A recent balance sheet of Save-A-Lot Supplies is provided below:

Other information provided by the company is as follows:
Total revenue for the year ended December 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . $51,000
Total expenses for the year ended December 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . 38,250
Total stockholders' equity, January 1, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,600
Compute and discuss briefly the significance of the following measures as they relate to Save- A-Lot Supplies:
a. Net income percentage in 2015.
b. Return on equity in 2015.
c. Working capital on December 31, 2015.
d. Current ratio on December 31, 2015.

Transcribed Image Text:

SAVE-A-LOT SUPPLIES BALANCE SHEET DECEMBER 31, 2015 Assets $13,600 14,400 600 3,400 Office supplies Prepaid rent Equipment $24,000 $46,400 Liabilities S 4,400 3,600 $ 8,000 Stockholders' Equity $20,000 18,400 $38,400 $46,400 Capital stock Total stockholders' equity.·… Total liabilities and stockholders' equity