A recent balance sheet of Oregon Foods is provided below:

Other information provided by the company is as follows:

Compute and discuss briefly the significance of the following measures as they relate to Oregon
Foods:
a. Net income percentage in 2011.
b. Return on equity in 2011.
c. Working capital on December 31, 2011.
d. Current ratio on December 31, 2011.

Transcribed Image Text:

OREGON FOODS BALANCE SHEET DECEMBER 31, 2011 Assets Cash Accounts receivable Office supplies Prepaid rent Equipment Accumulated depreciation: equipment(4,800) S 7.200 Total assets . . . 6,800 7,200 300 1,700 $12,000 $23,200 Liabilities Accounts payable Income taxes payable Total liabilities. $ 2,200 1,800 4,000 Stockholders' Equity Capital stock .. . Retained earnings.. Total stockholders' equity Total liabilities and stockholders' equity $10,000 9,200 $19,200 $23,200 Total revenue for the year ended December 31, 2011 Total expenses tor the year ended December 31,2011 Total stockholders' equity, January 1, 2011. .. . .. . $25,500 20,400 -- . 14,800 .. . . . .. ..