The following financial data are taken from the records of Big Brother Company.

Required:
1. Compute the following ratios for 2011 and 2012:
a. Current ratio
b. Debt ratio
c. Asset turnover
d. Return on sales
e. Return on equity
2. Have the firm€™s performance and financial position improved from 2011 to 2012?Explain.

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Big Brother Company Comparative Balance Sheet December 31, 2012 and 2011 2012 2011 Assets: S 38,000 11,000 220,000 70,000 S339,000 $ 23,000 15,000 195,000 70,000 Cash Accounts receivable Inventory Property, plant, and equipment $303,000 Total assets Liabilities and stockholders' equity: $ 52,000 175,000 112,000 $ 36,000 170,000 97,000 $303,000 Current liabilities Noncurrent liabilities Stockholders' equity. Total liabilities and stockholders' equity. $339,000 Big Brother Company Comparative Income Statement For the Years Ended December 31, 2012 and 2011 2012 2011 Sales. . Cost of goods sold. $463,000 240,000 $345,000 182,000 S223,000 133,000 15,000 30,000 $163,000 121,000 10,000 12,000 S 20,000 Gross margin on sales Operating expenses Interest expense. Income tax expense $ 45,000 Net income