Question

A company’s simplified balance sheet and income statement follow.


Total assets and owner’s equity at the beginning of 2014 were $180,000 and $140,000, respectively. The owner made no investments or withdrawals during the year.
1. Compute the following liquidity measures:
(a) Working capital
(b) Current ratio. (Round to one decimal place.)
2. Compute the following profitability measures:
(a) Profit margin,
(b) Asset turnover,
(c) Return on assets,
(d) Debt to equity ratio,
(e) Return on equity. (Round to one decimalplace.)


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  • CreatedMarch 26, 2014
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