16-54- E 8. Liquidity Ratios Harrington Housewares Company Income Statement For the Year Ended June 30, 20xx Chapter Assignments Revenues Net sales Interest income Total revenues $1,197,132 5,720 $1,202,852 Costs and expenses Cost of goods sold $777,080 Selling expenses 203,740 General and administrative expenses 100,688 13,560 Interest expense 1,095,068 Total costs and expenses $ 107,784 Net income income statement, and tell what insights can be obtained from the multistep form as opposed to the single-step form. The following accounts and balances are from the general ledger of Swan Company Accounts Payable $ 49,800 Accounts Receivable Cash 30,600 Marketable Securities Long-Term Investments Nether Current Portion of Long-Term Debt C 4.500 30,000 31,200 Notes Payable, 90 days. Merchandise Inventory CA CA 37,800 76,200 Notes Payable, 2 years Welther 45,000 DY Notes Receivable, 90 days. CA 60,000 Notes Receivable, 2 years Veithon 78,000 30,000 Prepaid Insurance CA 1,200 Property, Plant, and Equipment Nather CA-22875 180,000 C. Swan, Capital Neither. 84,900 Salaries Payable Supplies .CL 2,550 CA. 1,050 Property Taxes Payable CL 3,750 Unearned Revenue CL 2,250 Profitability Ratios Computation of Ratios E 9. Compute the (1) working capital and (2) current ratio. The following end-of-year amounts are from the financial statements of Laliberte Company: Total assets, $852,000; Total liabilities, $344,000; Owner's equity, $508,000; Net sales, $1,564,000; Cost of goods sold, $972,000; Operating expenses, $404,000; and Withdrawals, $80,000. During the past year, total assets increased by $150,000. Total owner's equity was affected only by net income and withdrawals. Compute (1) profit margin, (2) asset turnover, (3) return on assets, (4) debt to equity ratio, and (5) return on equity. y E 10. A simplified balance sheet and income statement for a sole proprietorship appear at the top of the next page. Total assets and owner's 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.