Suppose at January 31, 2018, Lee Consulting Corporation has the following balance sheet:
LEE CONSULTING CORPORATION
Balance Sheet
January 31, 2018
Assets
Current assets:
Cash .......................................... $ 5,000
Accounts receivable ......................... 2,200
Supplies ....................................... 420
Total current assets .......................... 7,620
Equipment, net ............................. 15,150
Furniture, net .............................. 3,650
Building, net ............................... 52,227
Land ........................................ 40,000
Total assets ................................. $118,467
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable ........................... $ 350
Salary payable .............................. 2,500
Total current liabilities .................... 2,850
Long-term liabilities:
Notes payable .............................. 40,000
Shareholders' equity:
Common shares ............................ 45,000
Retained earnings .......................... 30,617
Total liabilities and shareholders' equity $118,467
Additional information: Lee Consulting Corporation incurred interest expense of $2,400 during January. Net income for the month ended January 31, 2018, was $38,910. The market price of Lee Consulting Corporation's 1,500 common shares is $50.00 per share on January 31, 2018. Total shareholders' equity last year was $51,334.
Required Using this information, calculate the following ratios for Lee Consulting Corporation:
a. Current ratio
b. Debt ratio
c. Earnings per share
d. Price-earnings ratio
e. Rate of return on total assets
f. Rate of return on common shareholders' equity
Comment on each as to whether you feel the business is doing well or not and why you think so.