Exercise 9-13 Ratio analysis LO 9-2, 9-3, 9-4, 9-5

Following are the balance sheet of Faustin Companys for 2014.

FAUSTIN COMPANY'S Balance sheet
Assets
Cash	$	18,000
Marketable securities		12,000
Accounts receivable		25,000
Inventory		22,000
Property and equipment		160,000
Accumulated depreciation		(37,000	)
Total assets	$	200,000
Liabilities and Stockholders Equity
Accounts payable	$	11,500
Current notes payable		3,500
Mortgage payable		4,000
Bonds payable		21,500
Common stock		100,000
Retained earnings		59,500
Total liabilities and stockholders equity	$	200,000

The average number of common stock shares outstanding during 2014 was 880 shares. Net income for the year was $20,000.

Compute the Following:

a) Current Ratio

b) Earnings per share

c) Quick (acid-test) ratio

d) Return on investment

e) Return on equity

f) Debt to equity ratio