E7A. BUSINESS APPLICATION A company's simplified balance sheet and income statement follow Balance Sheet December 31, 2014 Assets Llabilities Current assets $ 50,000 Current liabilities $ 20,000 Investments 10,000 Long-term abilities 30,000 Property, plant, and equipment 146,500 Total liabilities $ 50,000 Intangible assets 13,500 Owner's Equity Owners capital 170,000 Total assets $220,000 Total liabilities and owner's equity $220,000 Income Statement For the Year Ended December 31, 2014 Net sales 5410,000 Cost of goods sold 250,000 Gross margin $160,000 Operating expenses 135.000 Net income $ 25,000 Total assets and owner's equity at the beginning of 2014 were $180,000 and $140,000 respectively. The owner made no investments or withdrawals during the year 1. Compute the following liquidity measures: (a) working capital and (b) current ratio. (Round to one decimal place.) 2. Compute the following profitability measures: (a) profit margin, (b) asset turnover, (c) return on assets, (d) debt to equity ratio, and (c) return on equity. (Round to one decimal place.)