MAROON CORPORATION

Balance Sheets

December 31

2020. 2019

Cash

$10,000. $ 9,000

Accounts receivable

38,000 35,000

Inventory

25,000 25,500

Land

10,000 9,000

Building

100,000 90,000

Accumulated depreciation

(26,000) (25,000)

Total

$167,000 $143,500

Accounts payable

$ 46,000 $ 50,000

Common stock

62,000 60,000

Retained earnings

59,000 33,500

Total

$167,000 $143,500

Maroon's 2020 income statement included net credit sales of $400,000, cost of goods sold of $110,000, and net income of $40,000.

Instructions:

Compute the following ratios for 2020. (a) Current ratio. (b) Acid-test ratio. (c) Receivables turnover. (d) Profit margin. (e)Return on assets.(Round ratios to 2 decimal places and percentages to 1 decimal place.)