Question

The following financial statements were prepared by Mystery Inc. for the year ended December 31, 2018. Also presented are various financial statement ratios for Mystery Inc as calculated from the prior year's financial statements. Sales represent net credit sales. The total assets and the receivables and inventory balances at December 31, 2018, were the same as at December 31, 2017.

Mystery Inc.
Balance Sheet
December 31, 2018
Assets:					Liabilities and Capital
Cash	$	840,000			Accounts payables						$		660,000
Receivables		400,000			Notes payable								100,000
Inventory		700,000			Other current liabilities								140,000
Total current assets	$	1,940,000			Total current liabilities						$		900,000
Plant and equipment–net		760,000			Long-term debt								450,000
					Common stock								450,000
					Retained earnings								900,000
Total assets	$	2,700,000			Total liabilities and capital						$		2,700,000
Mystery Inc.
Income Statement
Year Ended December 31, 2018
Sales						$	4,000,0000
Cost of goods sold
Material						$	900,000
Labor							700,000
Overhead							600,000					2,200,000
Gross margin										$		1,800,000
Selling expenses						$	540,000
General and administrative expenses							300,000					840,000
Operating income										$		960,000
Less interest expense												90,000
Income before taxes										$		870,000
Less federal income taxes												304,000
Net income										$		566,000

Required:

Items 1 through 9 below represent financial ratios that the auditor calculated during the prior year's audit. For each ratio, calculate the current year's ratio from the financial statements presented above.

	Calculations	12/31/2018	12/31/2017
1.	Current ratio		2.5
2.	Quick ratio		1.3
3.	Accounts receivable turnover		5.5
4.	Inventory turnover		2.5
5.	Total asset turnover		1.2
6.	Gross margin percentage		35	%
7.	Net operating margin %		25	%
8.	Times interest earned		10.3
9.	Total debt to equity		50	%

I need help with 5 through 9 thanks

Answer 1

5.Total asset Turnover rattio=Sales/Average Total Assets

=$4,000,000/$2,700,000

=1.48 times

6.Gross Margin Percentage=Gross Margin/Sales*100

=($1,800,000/$4,000,000)*100

=45%

7.Net Operating Margin %=Operating Margin/Total Sales*100

=($960,000/4,000,000)*100

=24%

8.Times interest earned=Earnings before interest and Taxes/Interest Expense

=$960,000/$90,000

=10.67 times

9.Total Debt to Equity=Total liabilities/Share holder's Equity*100

Total Liabilties=Total Current liabilities+Long term debt

=$900,000+$450,000

=$1,350,000

Share Holder's Equity=Common Stock+Retained Earnings

=$900,000+$450,000

=$1,350,000

Total Debt to Equity=($1,350,000/$1,350,000)*100

=100%