A summary of data from the income statements and balance sheet for Roman Construction Supply Company for 2011 and 2010 appears below.

Total assets and owner's equity at the beginning of 2010 were $680,000 and $420,000 respectively.

Required
1. Compute the following liquidity measures for 2010 and 2011:
(a) Working capital and
(b) Current ratio. Comment on the differences between the years.
2. Compute the following measures of profitability for 2010 and 2011:
(a) Profit margin,
(b) Asset turnover,
(c) Return on assets,
(d) Debt to equity ratio, and
(e) Return on equity. Comment on the change in performance from 2010 to 2011.

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2011 2010 S 183,000 1, I 60,000 90,000 400,000 670,000 2,300,000 150,000 S 155,000 870,000 60,000 290,000 520,000 1,740,000 102,000 с.urrent assets Toral asses Current liabilities Long-term liabilities Owner's equity Net sales Net income