REVIEW the Financial Statement below and Calculate various ratios for analysis (**This questions is worth 5 marks**) Sarasota Electronics Inc. Statement of Financial Position as at December 31, 2012

Non-current assets			Equity
Property, plant and equipment	$610,000		Share capital	$ 200,000
Accumulated depreciation	(110,000)		Retained earnings	140,000
Total non-current assets	500,000		Total equity	340,000
			Long-term debts	220,000
Current assets			Current liabilities
Inventories	45,000		Trade and other payables	70,000
Trade receivables	115,000		Short-term borrowings	80,000
Prepaid expenses	15,000		Total current liabilities	150,000
Marketable securities	10,000
Cash	25,000
Total current assets	210,000
			Total liabilities	370,000
Total assets	$ 710,000		Equity and liabilities	$ 710,000

Sarasota Electronics Inc.

Statement of Income for the period ended December 31, 2012

Revenue		$ 820,000
Cost of sales		(300,000)
Gross profit		520,000
Expenses
Distribution costs	($ 190,000)
Leasing	(20,000)
Administrative expenses	(140,000)
Amortization	(40,000)
Finance costs	(34,000)
Total expenses		(424,000)
Profit before taxes		96,000
Income tax expense		(30,000)
Profit for the year		$ 66,000

The current ratio is:	Answer 1Choose...8.0%.52.1 %.19.4%.6.7 times.1.4 times.3.8 times.1.1 times.
The quick ratio is:	Answer 2Choose...8.0%.52.1 %.19.4%.6.7 times.1.4 times.3.8 times.1.1 times.
The debt-to-total assets ratio is:	Answer 3Choose...8.0%.52.1 %.19.4%.6.7 times.1.4 times.3.8 times.1.1 times.
The times-interest-earned ratio is:	Answer 4Choose...8.0%.52.1 %.19.4%.6.7 times.1.4 times.3.8 times.1.1 times.
The inventory turnover is:	Answer 5Choose...8.0%.52.1 %.19.4%.6.7 times.1.4 times.3.8 times.1.1 times.
The return on revenue ratio is:	Answer 6Choose...8.0%.52.1 %.19.4%.6.7 times.1.4 times.3.8 times.1.1 times.
The return on equity ratio is:	Answer 7Choose...8.0%.52.1 %.19.4%.6.7 times.1.4 times.3.8 times.1.1 times.