Answer and Explanation:
The computation is shown below;
1. 
Working capital = Current Asset - Current Liabilities 
= $569,000 - $280,000
= $289,000
2. 
Current ratio  = Current Asset ÷ Current Liability 
= $569,000 ÷ $280,000
= 2.03
3. 
Acid-test (quick) ratio  = {(Current Asset - Inventory - prepaid expense) ÷ Current Liabilities } 
= {{$569,000- $320,000 - $8,000) ÷ ($280,000)} 
= 0.86 times
4. 
Debt-Equity ratio   = Total Liability ÷ Shareholders' Equity
= $670,000 ÷ $759,000
= 0.88 times
5. 
Times interest earned   = EBIT ÷ Interest Charges
= ($1,224,000 + $35,100) ÷ ($35,100) 
= 35.87 times
6. 
Average collection period 
= 365 ÷ ($3,010,00 ÷ $215,000)
= 26 days
The $215,000 comes from
= ($210,000 + $220,000) ÷ 2 
= $215,000
7. The average sales period is 
= 365 ÷ ($1,110,000 ÷ $300,000)
= 99 days
The $300,000 comes from
= ($280,000 + $320,000) ÷ 2 
= $300,000
8. The operating cycle is 
= 99 days - 26 days
= 73 days