Rollins Products has had poor operating results for the past two years. As the accountant for Rollins Products Corporation, you have the following information available to you:

Total assets and stockholders’ equity at the beginning of 20x6 were $90,000 and $80,000, respectively.
Required 1. Compute the following measures of liquidity for 20x6 and 20x7:

(a) working capital and

(b) current ratio. User Insight: Comment on the differences between the years.
2. Compute the following measures of profitability for 20x6 and 20x7:

(a) profit margin,

(b) asset turnover,

(c) return on assets,

(d) debt to equity ratio, and

(e) return on equity. User Insight: Comment on the change in performance from 20x6 to 20x7.

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20x7 Current assets $ 45,000 Total assets 145,000 20x6 $ 35,000 110,000 Current liabilities 20,000 10,000 Long-term liabilities 20,000 Stockholders' equity 105,000 100,000 Net sales 262,000 200,000 Net income 16,000 11,000