A summary of data from the income statements and balance sheets for Roman Construction Supply, Inc., for 2010 and 2009 appears below. 

Total assets and stockholders’ equity at the beginning of 2009 were $680,000 and $420,000, respectively.

Required 

1. Compute the following liquidity measures for 2009 and 2010: (a) working capital and (b) current ratio. Comment on the differences between the years. 

2. Compute the following measures of profitability for 2009 and 2010: (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 2009 to 2010.

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2010 2009 $ 155,000 870,000 60,000 290,000 520,000 1,740,000 102,000 $ 183,000 1,160,000 90,000 400,000 670,000 2,300,000 150,000 Current assets Total assets Current liabilities Long-term liabilities Stockholders' equity Net sales Net income