The simplified balance sheet and income statement for a corporation appear below.

Total assets and stockholders’ equity at the beginning of 20xx were $180,000 and $140,000, respectively.
1. Compute the following liquidity measures:

(a) working capital and

(b) current ratio.
2. Compute the following profitability measures:

(a) profit margin,

(b) asset turnover,

(c) return on assets,

(d) debt to equity ratio, and

(e) return on equity.

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Balance Sheet December 31, 20xx Assets Liabilities Current assets $ 50,000 Current liabilities Investments 10,000 Long-term liabilities $ 20,000 30,000 equipment Property, plant, and Intangible assets Total liabilities $ 50,000 146,500 13,500 Stockholders' Equity Common stock $100,000 Retained earnings 70,000 Total stockholders' equity $170,000 Total liabilities and Total assets $220,000 stockholders' equity $220,000 Income Statement For the Year Ended December 31, 20xx Net sales Cost of goods sold Gross margin Operating expenses Income before income taxes Income taxes Net income $410,000 250,000 $160,000 130,000 $ 30,000 5,000 $ 25,000