Ratio Computations and Analysis Vogue Company's condensed financial statements provide the following information.

(a) Determine the following for 2010.

(1) Current ratio at December 31.

(2) Acid-test ratio at December 31.

(3) Accounts receivable turnover.

(4) Inventory turnover.

(5) Rate of return on assets.

(6) Profit margin on sales.

(b) Prepare a brief evaluation of the financial condition of Vogue Company and of the adequacy of its profits.

VOGUE COMPANY BALANCE SZHEET Dec. 31, 2010 Dec. 31, 2009 $ 52,000 $ 60,000 Cash Accounts receivable (net) 158,000 80,000 40,000 Short-term investments 80,000 Inventories 440,000 360,000 7,000 3,000 $ 733,000 897,000 $1,630,000 Prepaid expenses $ 547,000 853,000 Total current assets Property, plant, and equipment (net) $1,400,000 Total assets 240,000 Current liabilities 160,000 400,000 Bonds payable Common stockholders' equity 400,000 990,000 840,000 Total liabilities and stockholders' equity $1,630,000 $1,400,000 INCOME STATEMENT FOR THE YEAR ENDED 2010 $1,640,000 (800,000) Sales Cost of goods sold Gross profit Selling and administrative expense Interest expense 40,000 (480,000) (40,000) $ 320,000 Net income