Presented below is information related to Carver Inc.

Instructions
(a) Compute the following ratios or relationships of Carver Inc. Assume that the ending account balances are representative unless the information provided indicates differently.
(1) Current ratio.
(2) Inventory turnover.
(3) Receivables turnover.
(4) Earnings per share.
(5) Profit margin on sales.
(6) Rate of return on assets on December 31, 2008.
(b) Indicate for each of the following transactions whether the transaction would improve, weaken, or have no effect on the current ratio of Carver Inc. at December 31, 2008.
(1) Write off an uncollectible account receivable, $2,200.
(2) Purchased its own common stock 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 ofaccount.

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Carver Inc Balance Sheet December 31, 2008 Cash S 45,000 Notes payable (short-term) 50,000 32,000 5,000 260,000 141,000 $488,000 $110,000 15,000 Accounts payable Accrued liabilities Less: Allowance 95.000 Capital stock (par $6) Retained earnings 170,000 Prepaid insurance Land Equipment (net) 8,000 20,000 150,000 $488,000 Income Statement For the Year Ended December 31, 2008 Sales $1,400,000 Cost of goods sold $200,000 790,000 990,000 170,000 Inventory, Jan. 1, 2008 Cost of goods available for sale Inventory, Dec. 31, 2008 Cost of goods sold Gross profit on sales Operating expenses Net income 820,000 580,000 170,000 $410,000