Question 18, 19 and 20 will be based on the information given below.

K Corporation reported the following balance sheet:

K Corporation

Balance Sheet

Cash	20,000		accounts payable	5,000
accounts receivable	25,000		Notes Payable	12,000
Inventory	35,000		accruals	17,000
Net Fixed Assets	130,000		Lon -Terms Debt	35,000
			Common Stock	20,000
			Retained Earnings	121 ,ooo
Total assets	210,000		Total Liabilities & Equity	210,000

18. Calculate K Corporation's current ratio.

A. 2.35 times

B. 2.59 times

C. 2.74 times

D. 2.98 times

1 9. Calculate K Corporation's debt ratio.

A. 32.86%

B. 37.62%

c. 39.45%

D. 42.95%

20. K Corporation has sales of RM600,000 and net income of RM70,000. Calculate K Corporation's return on equity.

A. 38.17%

B. 41.13%

c. 49.65%

D. 50.00%