Below comparative data for Sigma Company presented as follows (amounts in $):

December 31, 2020 December 31, 2019

Cash $25,000 $30,000

Short-term investments 35,000 18,000

Receivables (net) 120,000 80,000

Inventories 95,000 65,000

Equipment 110,000 75,000

Account payable 70,000 60,000

Taxes payable 50,000 30,000

Bonds payable 80,000 90,000

During 2020, sales were $830,000 and sales return $20,000, cost of goods sold was $615,000 and net income $210,000.

Instructions:

Compute and interpret the following ratios at December 31, 2020:

(a) Current ratio

(b) Profit Margin

(c) Receivables turnover in days

(d) Inventory turnover in days

(e) return on assets