Presented below are the comparative balance sheets of Big Apple, Inc., at December 31, 2004, and 2003. Sales for the year ended December 31, 2004, totaled $890,000.

Required:

(a) Calculate ROI for 2004.

(b) Calculate ROE for 2004.

(c) Calculate working capital at December 31, 2004.

(d) Calculate the current ratio at December 31, 2004.

(e) Calculate the acid-test ratio at December 31, 2004. 

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BIG APPLE, INC. Balance Sheets December 31, 2004 and 2003 2004 2003 Assets Cash Accounts receivable Merchandise inventory $45,000 49,000 106,000 197,000 $380,000 $352,000 60,000 325,000 134,000 201,000 Total current assets Land Building and Equipment 66,000 364,000 Less: Accumulate depreciation Total assets (186,000) (157,000) $624,000 $580,000 Liabilities Short-term debt Accounts payable 49,000 43,000 84,000 67,000 $205,000 $194,000 107,000 $292,000 $301,000 92,000 64,000 Other accrued liabilities Total currentliabilities Long-term debt Total liabilities 87,000 Owners E quity Common stock, no par, 100,000 shares authorized, 35,000 and 28,000 shares issued respectively Retained earnings: Beginning balance Net income for the year Dividends for the year Ending balance Total owners' equity Total liabilities and owners equity $102,000 78,000 168,000 67,000 (45,000 34,000) $230,000 $201000 $332.000 $279.000 $580,000 201,000 74,000 624,000