1. Listed below are the four categories of financial ratios and a list of the individual financial ratios. Identify which financial ratio is included in which category.

Category: Financial Ratios:

A. Profitability A. current ratio B. Asset Utilization B. inventory turnover C. Liquidity C. profit margin D. Debt Utilization (Leverage) D. return on assets E. return on equity F. quick ratio G. debt to total assets H. accounts receivable turnover I. earnings per share

2. Write the ratio formula for each of the financial ratios:

A. Profit Margin

B. Return on Equity

C. Earnings/Share

D. Current Ratio

E. Quick Ratio

F. Inventory Turnover

G. Accounts Receivable Turnover

H. Return on Assets

I. Debt to Total Assets

3. Divide into small groups and compute each of the financial ratios listed in Question #2 for Alpine Manufacturing using the company's balance sheet and income statement on the second page. Compare your answers to those of another group. Make corrections where necessary.