Jennifer has $500,000 of total assets including current assets of $300,000. The following information has also been produced about the Jennifer:

* The two owners have contributed $50,000 each.

* The Jennifer has always distributed all the profits.

* Total Liabilities are $400,000. The Jennifer owes $75,000 to trade creditors/accounts payable. The remainder of the entitys loan financing is via a mortgage loan.

* The Jennifer made a Net Profit after tax this year of $60,000.

* The profit figure includes $20,000 of interest expense associated with the loan.

Required:

In the boxes provided state whether each statement is true or false.

a. The Jennifer current ratio is 4 : 1.

b. The Jennifer uses more debt financing than equity financing.

c. The Jennifers net assets are $400,000. (

d. The Jennifer Return on Equity is 10%.