Answer the following questions:

Question G

A firm has the following balance sheet as June 14, 2018. What is its current ratio?

Cash	$10,000
Inventory	$25,000
Prepaid Expenses	$10,000
Property, Plant, and Equipment	$100,000
Goodwill	$25,000
Total Assets	$170,000
Accounts Payable	$5,000
Accruals	$15,000
Current Portion of Long Term Bonds Payable	$25,000
Long Term Bonds Payable	$50,000
Common Stock, Par	$1,000
Common Stock, Paid in Capital	$50,000
Retained Earnings	$24,000
Total Liabilities and Equity	$170,000

Question H

Using the information below, calculate the 2018 Operating Cash Flow.

	2018		2017
Cash	$ 10,000.00		$ 8,000.00
Inventory	$ 25,000.00		$ 5,000.00
Prepaid Expenses	$ 10,000.00		$ 5,000.00
Property, Plant, and Equipment	$ 100,000.00		$ 110,000.00
Goodwill	$ 25,000.00		$ 25,000.00
Total Assets	$ 170,000.00		$ 153,000.00
Accounts Payable	$ 5,000.00		$ 10,000.00
Accruals	$ 15,000.00		$ 8,500.00
Current Portion of Long Term Bonds Payable	$ 25,000.00		$ 7,000.00
Long Term Bonds Payable	$ 50,000.00		$ 60,000.00
Common Stock, Par	$ 1,000.00		$ 1,000.00
Common Stock, Paid in Capital	$ 50,000.00		$ 50,000.00
Retained Earnings	$ 24,000.00		$ 16,500.00
Total Liabilities and Equity	$ 170,000.00		$ 153,000.00
Sales	$ 100,000.00		$ 90,000.00
COGS	$ 25,000.00		$ 20,000.00
Gross Profit	$ 75,000.00		$ 70,000.00
Depreciation	$ 20,000.00		$ 18,000.00
EBIT	$ 55,000.00		$ 52,000.00
Interest	$ 5,000.00		$ 10,000.00
EBT	$ 60,000.00		$ 42,000.00
Taxes	$ 12,600.00		$ 8,820.00
NI	$ 47,400.00		$ 33,180.00

Question I

A firm's ROE has increased from 2017 to 2018. Using the information below, identify the ROE component that is responsible for the increase.

	2018		2017
Cash	$ 10,000.00		$ 8,000.00
Inventory	$ 25,000.00		$ 5,000.00
Prepaid Expenses	$ 10,000.00		$ 5,000.00
Property, Plant, and Equipment	$ 100,000.00		$ 110,000.00
Goodwill	$ 25,000.00		$ 25,000.00
Total Assets	$ 170,000.00		$ 153,000.00
Accounts Payable	$ 5,000.00		$ 10,000.00
Accruals	$ 15,000.00		$ 8,500.00
Current Portion of Long Term Bonds Payable	$ 25,000.00		$ 7,000.00
Long Term Bonds Payable	$ 50,000.00		$ 60,000.00
Common Stock, Par	$ 1,000.00		$ 1,000.00
Common Stock, Paid in Capital	$ 50,000.00		$ 50,000.00
Retained Earnings	$ 24,000.00		$ 16,500.00
Total Liabilities and Equity	$ 170,000.00		$ 153,000.00
Sales	$ 100,000.00		$ 90,000.00
COGS	$ 25,000.00		$ 20,000.00
Gross Profit	$ 75,000.00		$ 70,000.00
Depreciation	$ 20,000.00		$ 18,000.00
EBIT	$ 55,000.00		$ 52,000.00
Interest	$ 5,000.00		$ 10,000.00
EBT	$ 60,000.00		$ 42,000.00
Taxes	$ 12,600.00		$ 8,820.00
NI	$ 47,400.00		$ 33,180.00

Question J

A firm has a ROA of 10% and a debt ratio of 75%. The firm has sales of $50,000 and net income of $10,000. How much equity does the firm have?