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a. current ratio b. debt to equity ratio c. interest coverage ratio( assume expense equalsinterest paid) d. return on assets e.financial leverage f.return on equity
a. current ratio
\begin{tabular}{|c|c|c|} \hline 4 & \multicolumn{2}{|l|}{ Brownsville Industries } \\ \hline 5 & Balance Sheet & \\ \hline 6 & At June 30 & \\ \hline 7 & Cash & $26,000 \\ \hline 8 & Short-Term Investments & 51,000 \\ \hline 9 & Accounts Receivable (net) & 125,000 \\ \hline 10 & Merchandise Inventory & 82,400 \\ \hline 11 & rivpe & 325,000 \\ \hline 12 & Intangible Assets & 19.500 \\ \hline 13. & Total Assets & $628,900 \\ \hline 14. & & \\ \hline 15 & Current Liabilities & $97,500 \\ \hline 16 & 11% Bonds payable, long-term & 200,000 \\ \hline 17. & Common Stock & 10,000 \\ \hline 18 & Paid in Capital in excess of par & 40,000 \\ \hline 19 & Retained Eamings & 281,400 \\ \hline 20 & Total Liabilities and Equity & $628,900 \\ \hline 21 & & \\ \hline 22 & Brownsville Industries & \\ \hline 23 & Income Statement & \\ \hline 24 & For the Year Ended June 3 & \\ \hline 25 & & $750,000 \\ \hline 26 & Cost of Goods Sold & 395,000 \\ \hline 27. & Gross Profit & $355,000 \\ \hline 28 & Operating Expenses & 155,400 \\ \hline 29 & Operating Income & $199,600 \\ \hline 30 & Interest Expense & 22,000 \\ \hline 31. & Income before Income Taxes & 517,600 \\ \hline 32 & Income Taxes & 53.280 \\ \hline 33 & Net Income & $124,320 \\ \hline 34 & & \\ \hline 35 & & \\ \hline 36 & Pnor vear data & \\ \hline 37 & Total Assets & $525,000 \\ \hline 38 & 3 Shareholders' Equity & 220.000 \\ \hline 39 & & \\ \hline \end{tabular} b. debt to equity ratio
c. interest coverage ratio( assume expense equalsinterest paid)
d. return on assets
e.financial leverage
f.return on equity
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