# Cat Fancy, Inc., has provided the following information from its most current financial statements. Total revenue........................................................................... $150,000 Total expenses ............................................................................ 96,000 Total current assets ........................................................................38,400 Total current liabilities .....................................................................9,600 Total stockholders' equity, previous year ............................................. 88,800 Total stockholders' equity, current

Cat Fancy, Inc., has provided the following information from its most current financial statements.

Total revenue........................................................................... $150,000

Total expenses ............................................................................ 96,000

Total current assets ........................................................................38,400

Total current liabilities .....................................................................9,600

Total stockholders' equity, previous year ............................................. 88,800

Total stockholders' equity, current year .............................................. 91,200

a. Compute the company's net income percentage in the current year.

b. Compute the company's return on equity in the current year.

c. Compute the company's current ratio at December 31, current year.

Total revenue........................................................................... $150,000

Total expenses ............................................................................ 96,000

Total current assets ........................................................................38,400

Total current liabilities .....................................................................9,600

Total stockholders' equity, previous year ............................................. 88,800

Total stockholders' equity, current year .............................................. 91,200

a. Compute the company's net income percentage in the current year.

b. Compute the company's return on equity in the current year.

c. Compute the company's current ratio at December 31, current year.

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**Related Book For**

## Financial and Managerial Accounting the basis for business decisions

**ISBN:** 978-1259692406

18th edition

**Authors:** Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

**Question Details**

Chapter #

**5**- The Accounting Cycle Reporting Financial ResultsSection: Brief Exercises

Problem: 8

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