A companys simplified balance sheet and income statement follow. Total assets and owners equity at the beginning of 2014 were $180,000 and $140,000, respectively. The

A company’s simplified balance sheet and income statement follow.

Total assets and owner’s equity at the beginning of 2014 were $180,000 and $140,000, respectively. The owner made no investments or withdrawals during the year.
1. Compute the following liquidity measures:
(a) Working capital
(b) Current ratio. (Round to one decimal place.)
2. Compute the following profitability measures:
(a) Profit margin,
(b) Asset turnover,
(c) Return on assets,
(d) Debt to equity ratio,
(e) Return on equity. (Round to one decimalplace.)

Balance Sheet December 31, 2014 Assets Liabilities $50,000 Current assets Investments Property, plant, and equipment Intangible assets 20,000 30,000 50,000 Current liabilities 10,000Long-term liabilities 146,500 13,500 Total liabilities Owners Equity Owner's capital 170,000 Total assets $220,000 Total liabiities and owners eqity $220,000 Income Statement For the Year Ended December 31, 2014 Net sales Cost of goods sold Gross margin Operating expenses Net income $410,000 250,000 $160,000 135,000 25,000