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

Total assets and stockholders' equity at the beginning of 20xx were $360,000 and $280,000, 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. E-10

Transcribed Image Text:

Balance Sheet December 31, 20xx Assets Liabilities Current assets $100,000 Current liabilities $ 40,000 Investments 20,000 Long-term liabilities 60,000 Property, plant, and Total liabilities $100,000 equipment 293,000 Intangible assets 27,000 Stockholders' Equity Common stock $200,000 Retained earnings 140,000 Total stockholders' equity $340,000 Total liabilities and Total assets $440,000 stockholders' equity $440,000