1.) Compute working capital using the following data:

Current Assets	$185,000
Current Liabilities	105,000
Total Assets	495,000
Total Liabilities	275,000

	A.) $290,000
	B.) $195,000
	C.) $80,000
	D.) $770,000

2.)

The following ratios have been calculated based on 2011 financial statements for McDonalds and Starbucks:

Ratio	McDonalds	Starbucks
Current Ratio	1.255	1.828
Return on Equity	0.382	0.284
Profit Margin	0.807	0.106

Based on these ratios, which company is more profitable?

A.)	Starbucks
B.)	McDonalds

3.)

The following ratios have been calculated based on 2011 financial statements for McDonalds and Starbucks:

Ratio	McDonalds	Starbucks
Current Ratio	1.255	1.828
Return on Equity	0.382	0.284
Profit Margin	0.807	0.106

Based on these ratios, which company is better able to pay off its short-term debts?

A.)	Starbucks
B.)	McDonalds