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Assess the liquidity, efficiency, and profitability of the company and summarize your findings. Year 1 2015 Title Formula Calculation Answer Current Ratio Current Assets/Current Liabilities

Assess the liquidity, efficiency, and profitability of the company and summarize your findings.

Year 1 2015

Title

Formula

Calculation

Answer

Current Ratio

Current Assets/Current Liabilities

$13,208/$10,696

1.234854151

Asset Turnover

Net sales/total value of inventory

$58363/$38,311

1.52340059

ROA

Net income/total assets*100

$4,844/$38,311*100

12.64%

ROE

Net Income/Stockholders equity

$4844/2,491

1.94

Gross Profit Margin

Revenue COGCS/Revenue

Year 2 2016

Title

Formula

Calculation

Answer

Current Ratio

Current Assets/Current Liabilities

13,849/11,730

1.180647911

Asset Turnover

Total sales/total value of inventory

60,906/40,377

1.508433019

ROA

Net income/total assets

3,3431/40,377*100

8.50%

ROE

Net Income/Stockholders equity

3,431/429

8.00

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