Question: i need help to calculate each one show steps please . the debt ratio : the acid test ratio: the return on equity: The current
Assets: Cash and marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets Less: accum. depr Net fixed assets Total sets $400,000 1,415,000 1,847,500 24,000 3,686,500 2,800,000 (1,087,500) 1.712.500 $5,399,000 Liabilities: Accounts payable Notes payable Accrued taxes Total current liabilities Long-term debt Common Stock (100,000 shares) Retained Earnings Total liabilities and owner's equity $600,000 875,000 92,000 $1,567,000 900,000 700,000 2,232,000 $5,399,000 Net sales (all credit) Less: Cost of goods sold Selling and administrative expense Depreciation expense Interest expense Earnings before taxes Income taxes Net income $6,375,000 (4,375,000) (1,000,000) (135,000 (100,000) $765,000 (306,000) $459,000
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