1. Shown below is a recent income statement for B-D Electric.

B-D ELECTRIC

Income Statement

For the Year Ended January 31, 2015

Net sales		7,500,000
Less: Cost of goods sold		4,100,000
Gross profit		$ 3,400,000
Less: Operating expenses		1,975,000
Operating Income		$ 1,425,000
Less: Non-operating expenses:
Interest expenses	$ 175,000
Income taxes expense	280,000	455,000
Net Income		$ 970,000

Assume that comparative balance sheets for B-D Electric indicate average total assets for the year of $ 2,500,000 and average total equity of $2,050,000.

Compute the following: and ( please show the work Thank You).

a. Gross profit.

b. Net income as percentage of net sales.

c. Return on assets.

d. Return on equity.

2. Show below are selected items appearing in a recent balance sheet of Grant Products. (Dollar amounts are in thousands).

Cash and Cash equivalents	$620
Investment in marketable securities	$300
Receivables	$1,400
Inventories	$1,100
Prepaid expense and other current assets	$450
Plant and equipment	$3,300
Accounts payable	$1,600
Bank loans payable within one year	$300
Income taxes payable	$300
Retained earnings	$1,700

Compute the following:

(1) Total Quick Assets

(2) Total Current Assets

(3) Total Current Liabilities

(4) Quick Ratio

(5) Current Ratio

Thank You