The condensed balance sheet and income statement for Marjoram Company are presented below.

1.Compute the current ratio for Marjoram Company.

2.Compute the acid-test ratio for Marjoram Company.

3. Compute the debt-to-equity ratio for Marjoram Company.

4. Compute the times interest earned ratio for Marjoram Company.

5.Compute the return on shareholders' equity ratio for Marjoram Company.
 

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Marjoram Company Balance Sheet At December 31, 2009 Cash Temporary investments in marketable securities Accounts receivable (net) Merchandise inventory Property, plant, and equipment (net) Intangible assets Total assets Current liabilities 11% Bonds payable, long-term Paid-in capital Retained earnings Total liabilities and equity Marjoram Company Income Statement For the Year ended December 31, 2009 Sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense Income before income taxes Income taxes Net income $ 19,000 35,000 48,400 70,600 250,000 12.400 $435,400 $108,400 100,000 70,000 157.000 $435,400 $704,000 422,400 $281.600 166.200 $115,400 11.000 $104,400 31.320 $ 73,080 Marjoram Company Balance Sheet At December 31, 2009 Cash Temporary investments in marketable securities Accounts receivable (net) Merchandise inventory Property, plant, and equipment (net) Intangible assets Total assets Current liabilities 11% Bonds payable, long-term Paid-in capital Retained earnings Total liabilities and equity Marjoram Company Income Statement For the Year ended December 31, 2009 Sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense Income before income taxes Income taxes Net income $ 19,000 35,000 48,400 70,600 250,000 12.400 $435,400 $108,400 100,000 70,000 157.000 $435,400 $704,000 422,400 $281.600 166.200 $115,400 11.000 $104,400 31.320 $ 73,080

Answer rating: 100% (QA)

Current Ratio Current assetscurrent Liabilities 19000350004840070600 108400 160 Acid Test Rati... View the full answer