Problem 16 problems 1-8

Required: Determine the following: 1. Total current assets 2. Total current liabilities 3. Net income 4. Asset turnover 5. Total owners' equity 6. Long-term debt 7. Return on assets 8. Debt-equity ratio th Problem 16 The following information applies to the Maris Restaurant: O Cash and marketable securities $10,000 Property and equipment $1,500,000 Total sales $2,000,000 Profit margin 5% Acid-test 1.2 to 1 Current ratio 1.5 to 1 ROE 10 percent Accounts receivable turnover 20 times Assume the following: 1. The accounts receivable turnover is based on total sales. 2. Total assets are equal to current assets plus property and equipment 3. The balances of balance sheet accounts at the beginning of the year are the same as af the end of the year