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please do not hand writing Q2: Given the following financial data, compute: a. Return on equity. b. Quick ratio. c. Long-term debt to equity. d.

please do not hand writing

Q2: Given the following financial data, compute:

a. Return on equity.

b. Quick ratio.

c. Long-term debt to equity.

d. Fixed-charge coverage.

Assets:

Cash

$ 2,500

Accounts receivable

3,000

Inventory

6,500

Fixed assets

8,000

Total assets

$20,000

Liabilities and stockholders equity:

Short-term debt

$ 3,000

Long-term debt

2,000

Stockholders equity

15,000

Total liabilities and stockholders equity

$20,000

Income before fixed charges and taxes

$ 4,400

Interest payments

800

Lease payment

400

Taxes (35 percent tax rate)

1,120

Net income (after-taxes)

$ 2,080

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