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2020 2019 Name of Ratio Calculation Ratio Calculation Ratio 1 Current ratio 39271 48839 0.80 21760 37930 0.57 2 Debt to total assets 54839 116071

2020 2019
Name of Ratio Calculation Ratio Calculation Ratio
1 Current ratio 39271 48839 0.80 21760 37930 0.57
2 Debt to total assets 54839 116071 47.20% 37,930 88160 43%
3 Gross profit rate 262931 254375 54.10% 254375 462500 55.00%
4 Profit margin 37002 485625 7.60% 42000 462500 9.10%
5 Return on assets 37002 102116 36.2% 42000 60670 69.2%
6 Return on common stockholders' equity (37002 - 18000) 55731 34.1% (42000 - 16800) 36705 68.7%

(a) Comment your finds from the above ratios.

(b) What impact would borrowing an additional $20,000 to buy more equipment have on each of the ratios in (a) above, assuming that no changes are expected on the income statement and balance sheet? Comment on your findings.

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