Chapter 3 Practice problem 1 Case Study: GreenLeaf Organics Ltd. Background: GreenLeaf Organics Ltd. produces organic packaged foods and has provided the following financial data for 2024: Sales: $2,500,000 Net Income: $250,000 Total Assets: $1,800,000 Total Equity: $1,000,000 Current Assets: $600,000(including Inventory: $200,000; Cash: $50,000) Current Liabilities: $400,000 Long-term Debt: $500,000 EBIT (Operating Income): $320,000 Interest Expense: $40,000 Shares Outstanding: 50,000 Market Price per Share: $22 Questions: 1. Calculate the Quick Ratio. What does it indicate? 2. Calculate the Cash Ratio. What does it indicate? 3. Calculate the Total Asset Turnover. What does it show about efficiency? 4. Calculate the Equity Multiplier. What does it show about leverage? 5. Calculate the Long-term Debt Ratio. Is the firm heavily reliant on debt? 6. Calculate the Times Interest Earned Ratio. Is the firm at risk in paying interest? 7. Calculate the Profit Margin. What does it indicate about cost control? 8. Calculate Return on Assets (ROA).9. Calculate Return on Equity (ROE).10. Calculate the PriceEarnings (P/E) Ratio. What does it tell about market expectations?