1. Describe what the results of each of the following ratios mean.

• Quick Ratio of 1.8
• Debt to Equity Ratio of 1.0
• Return on Investment of 11.5%

2. Highland Inc is a marketing agency and has the following data for the most recent year. Using the data below, create a simple income statement* to compute the net income. Explain what the net income represents.

Revenues from Fees $750,000

Cash $30,000

Utilities Expense $51,000

Building $850,000

Notes Payable $250,000

Salaries Expense $120,000

Office Supplies $12,000

Interest Expense $31,000

Office Equipment $225,000

Administrative Expense $85,000