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A company shows the following selected financial information from activities for the current year. Gross sales $225,000 Current assets $40,000 Long-term assets $100,000 Accounts Payable

A company shows the following selected financial information from activities for the current year.

Gross sales $225,000

Current assets $40,000

Long-term assets $100,000

Accounts Payable $16,000

5 Year Note Payable $44,000

Net Income $7,200

Outstanding shares 5,000

Par value of shares $9 per share

Retained Earnings $35,000 (includes current net income)

Calculate the following from the above information provided:

Current ratio

Debt-to-equity ratio is

Return on Owners equity

Earnings per share

Knowing that:

Debt to Equity = Total Liabilities/ Total Equity

Return on Equity = Net Income / Shareholder Equity

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