The following information was taken from the annual report of ROM. The account balances are as of December 31, 2011.

Cash………………………………..         $ 1,220

Accounts receivable………………..   3,112

Merchandise inventory……………..    966

Prepaid expenses……………..             149

Buildings, net…………………..           2,992

Equipment, net ………………..          1,045

Accounts payable ……………..         1,685

Notes payable …..……………..         1,100

Long- term liabilities ……………..    2,000

Common stock, no par value…… 3,042

Retained earnings ……………..        1,657

Sales for the year ……………..       10,200

Cost of goods sold …………….        6,750

Net income ……………..                   2,500

Requirements

1. Calculate the following ratios for 2011:

a. Debt- to- equity ratio

b. Gross profit percentage

c. Current ratio

d. Profit margin ratio

2. What do the ratios indicate about the success of ROM? What additional information would be useful to help you analyze the overall performance of this company?