Comprehensive problem TWEETY Company was established on January 1. 2016 and is engaged in the manufacture of clothesand other apparel. The company make use of 365 days in its computation for some of the ratios.Refer to the Comparative Statement of Financial Position (Balance Sheet) and Statement ofComprehensive Income for the year 2016 and 2017 below for the basis of your computation.TWEETY CompanyTWEETY CompanyatCOMPARATIVE BALANCE SHEETCOMPARATIVE INCOME STATEMENTFor the year 2016 & 2017For the year 2016 & 2017Y!20162017ateASSETS20162017Net Sales700,000.00900,000.00Cash290,000.00400,000.00Less: Cost of Goods Sold(100,000.00)(80,000.00)Accounts Receivable120,000.00100,000.00Gross Profit600,000.00820,000.00Trading Securities40,000.0020,000.00( 50,000.00)(120,000.00)Less: Operating ExpensesEarnings Before Interest andТаxesInventories60,000.0080,000.00550,000.00700,000.00Prepaid Expenses10,000.0020,000.00Less: Interest expense(10,000.00)(50,000.00)Total Current Assets520,000.00620,000.00Net Income before Tax540,000.00650,000.00Less: Income Tax Expense(162,000.00)(195,000.00)Total Non-current Assets200,000.00300,000.00Net Income After Tax378,000.00455,000.00Total Assets720,000.00920,000.00LIABILITIESTotal Current Liabilities100,000.0050,000.00Total Non-CurrentLiabilities300,000.00450,000.00Total Liabilities400,000.00500,000.00OWNER'S EQUITYX, Capital320,000.00420,000.00Total Liabilities and OE720,000.00920,000.00Compute the following ratios for the year 2016 and 2017. Show your solutions.1. Working Capital2. Current Ratio3. Quick Ratio4. A/R Turnover Ratio5. Average collection period6. Inventory Turnover Ratio7. Average days in Inventory8. Number of days in operating cycle9. Debt to total assets ratio10. Debt to Equity Ratio11. Times Interest Earned ratio12. Gross Profit Ratio13. Profit Margin Ratio14. Return on Assets15. Return on Equity

Since we answer only three subparts, we will answer the first three subparts. Please resubmit the…

TWEETY Company was established on January 1, 2016 and is engaged in the manufacture of clothes and other apparel. The company make use of 365 days in its computation for some of the ratios. Refer to the Comparative Statement of Financial Position (Balance Sheet) and Statement of Comprehensive Income for the year 2016 and 2017 below for the basis of your computation.