A) Given the balance sheet and income statement, calculate the ratios below.

Liquidity 2018 2019

Current ratio _______ _______

Days cash on hand _______ _______

Capital Structure

Equity Financing _______ _______

Times Interest Earned _______ _______

Turnover

Total Asset _______ _______

Fixed Asset _______ _______

Current Asset _______ _______

Profitability

Total Margin _______ _______

Return on Assets _______ _______

Return on Equity _______ _______

B) Comment on the change in return on equity between 2018 and 2019, why did it increase?

	2018	2019			2018	2019
Operating revenue	$1,514,000	$1,501,000		Cash	$29,000	$36,000
Other revenue	96,000	139,000		Other Current Assets	180,000	174,000
Total Revenue	$1,610,000	$1,640,000		Fixed Assets	941,000	1,060,000
				Total Assets	$1,150,000	$1,270,000
Salaries & Benefits	$854,000	$864,000
Supplies	470,000	475,000		Total Liabilities	$413,000	$464,000
Depreciation	93,000	89,000
Interest	124,000	122,000		Equity	$737,000	$806,000
Total Expense	$1,541,000	$1,550,000
Profit	$69,000	$90,000