The following information is related to Leland AG.

Instructions
a. Compute the following ratios or relationships of Leland. Assume that the ending account balances are representative unless the information provided indicates differently.
1. Current ratio.
2. Inventory turnover.
3. Accounts receivable turnover.
4. Earnings per share.
5. Profit margin on sales.
6. Return on assets on December 31, 2019.
b. Indicate for each of the following transactions whether the transaction would improve, weaken, or have no effect on the current ratio of Leland at December 31, 2019.
1. Write off an uncollectible account receivable, ‚¬2,200.
2. Repurchase ordinary shares for cash.
3. Pay ‚¬40,000 on notes payable (short-term).
4. Collect ‚¬23,000 on accounts receivable.
5. Buy equipment on account.
6. Give an existing creditor a short-term note in settlement of account.

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Leland AG Statement of Financial Position December 31, 2019 Equipment (net) €150,000 Share capital-ordinary (par €5) €260,000 Land 20,000 Retained earnings 141,000 Prepaid insurance 50,000 8,000 Notes payable (short-term) 32,000 Inventory 170,000 Accounts payable Receivables €110,000 Accrued liabilities 5,000 15,000 Less: Allowance 95,000 45,000 Cash €488,000 €488,000 Leland AG Income Statement For the Year Ended December 31, 2019 Sales revenue €1,400,000 Cost of goods sold Inventory, Jan. 1, 2019 €200,000 Purchases 790,000 Cost of goods available for sale 990,000 Inventory, Dec. 31, 2019 (170,000) Cost of goods sold 820,000 Gross profit on sales 580,000 Operating expenses 370,000 Net income € 210,000