$1.$ The December $31,2016,$ balance sheet for Roberts, Inc. is presented below.

Balance Sheet December $31,2016$

Current assets $$46,000$

Net fixed assets $23,000$

Total $$69,000$

Accounts payable $18,500$

Notes payable $11,000$

Long$-$term debt $(10\%)14,500$

Common equity $25,000$

Total $$69,000$

A$.$ Calculate Roberts's current ratio and net working capital.

B$.$ B$.$ Roberts feels that its current ratio is too far below the industry average of $2\mathrm{.}2.$ To improve their liquidity, the treasurer of Roberts has devised a plan to issue $$11,000$ in long$-$term debt at $12\%$ and pay off its notes payable. Calculate the firm's current ratio and net working capital.

C$.$ Did Roberts improve their liquidity?

D$.$ What do you think happened to Roberts's return on investment?