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Assets: Cash................................................................... $ 2,500 Accounts receivable............................................ 3,000 Inventory........................................................... 6,500 Fixed assets........................................................ 8,000 Total assets............................................................. $20,000 Liabilities and stockholders equity: Short-term debt................................................. $ 3,000 Long-term debt..................................................

  1. Assets:

    Cash...................................................................

    $ 2,500

    Accounts receivable............................................

    3,000

    Inventory...........................................................

    6,500

    Fixed assets........................................................

    8,000

    Total assets.............................................................

    $20,000

    Liabilities and stockholders equity:

    Short-term debt.................................................

    $ 3,000

    Long-term debt..................................................

    2,000

    Stockholders equity...........................................

    15,000

    Total liabilities and stockholders equity..................

    $20,000

    Income before fixed charges and taxes.....................

    $ 4,400

    Interest payments....................................................

    800

    Lease payment........................................................

    400

    Taxes (35 percent tax rate)......................................

    1,120

    Net income (after-taxes)..........................................

    $ 2,080

Given this information, what would...

  1. Return on equity be?
  2. Quick ratio.

  3. Long-term debt to equity.

  4. Fixed-charge coverage.

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