Chapter 11-in lieu of a depreciation problem, the topic of financial ratios is addressed

The condensed balance sheet and income statement for Marjoram Company are presented below.

1. Compute the current ratio for Marjoram Company. Round your answer to two decimal places.

2. Compute the acid-test ratio for Marjoram Company. Round your answer to two decimal places.

3. Compute the debt to equity ratio for Marjoram Company. Round your answer to two decimal places.

4. Compute the times interest earned ratio for Marjoram Company. Round your answer to two decimal places.

5. Compute the return on shareholders' equity ratio for Marjoram Company. Round your answer to two decimal places.

Marjoram Company Balance Sheet At December 31, 2018 $ 19,000 35,000 48,400 70,600 250,000 12,400 $435400 Nontrade receivable due August 15, 2019 Accounts receivable (net) Merchandise inventory Property, plant, and equipment (net) Intangible assets Total Assets $108,400 100,000 70,000 157,000 435,400 Current liabilities 11% Bonds payable, long term Paid in capital Retained earnings Total liabilities and equity Marjoram Company Income Statement For the Year ended December 31, 2018 $704,000 422,400 $281,600 166,200 $115,400 11,000 $104,400 31,320 $ 73,080 Sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense Income before income taxes Income taxes Net income