Question 5:

Review the following financial statements of JKL Corporation:

Item	Amount (in $ thousands)
Cash and Cash Equivalents	2,000
Accounts Receivable	8,000
Inventory	12,000
Total Current Assets	22,000
Property, Plant, Equipment	18,000
Total Assets	40,000
Accounts Payable	6,000
Short-Term Loans	4,000
Long-Term Debt	10,000
Total Liabilities	20,000
Common Equity	10,000
Retained Earnings	10,000
Total Liabilities and Equity	40,000

1. Calculate the Current Ratio.
2. Compute the Acid-Test Ratio.
3. Determine the Debt to Equity Ratio.
4. Calculate the Return on Assets (ROA) if Net Income is $5,000.
5. Compute the Return on Equity (ROE).