Following is the balance sheet of Perez Company for Year 3:

PEREZ COMPANY Balance sheet
Assets
Cash	$	15,150
Marketable securities		7,700
Accounts receivable		12,620
Inventory		11,050
Property and equipment		170,500
Accumulated depreciation		(12,900	)
Total assets	$	204,120
Liabilities and Stockholders’ Equity
Accounts payable	$	8,150
Current notes payable		3,280
Mortgage payable		4,150
Bonds payable		21,480
Common stock		113,500
Retained earnings		53,560
Total liabilities and stockholders’ equity	$	204,120

The average number of common stock shares outstanding during Year 3 was 900 shares. Net income for the year was $14,500.

Required
Compute each of the following: (Round your answer to 2 decimal places. For percentages, 0.2345 should be entered as 23.45.)

a.	Current ratio	4.07selected answer correct
b.	Earnings per share	$16.11selected answer correct	per share
c.	Quick (acid-test) ratio	3.10selected answer correct
d.	Return on investment	7.10selected answer correct	%
e.	Return on equity	?	%
f.	Debt to equity ratio	?

Answer rating: 100% (QA)

Solution Current Ratio Earnings per share Quick Acid Test Ra... View the full answer