Required:

Compute the following ratios for Marjarom Company:

1. Current ratio

2. Acid-test ratio

3. Debt to equity ratio

4. Times interest earned ratio

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MARJORAM COMPANY Balance Sheet At December 31, 2021 Cash Notes receivable (due August 15, 2022) Accounts receivable (net) Inventory Property, plant, and equipment (net) Intangible assets Total assets Current liabilities Bonds payable (11%) (long-term) Common stock Retained earnings Total liabilities and equity $ 19,000 35,000 48,400 70,600 250,000 12,400 $435,400 $108,400 100,000 70,000 157,000 $435,400 MARJORAM COMPANY Income Statement For the Year ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense Income before income tax Income tax expense Net income $704,000 422,400 $281,600 166, 200 $115,400 11,000 $104,400 31,320 $ 73,080