Scenario: Financial Ratios for Company E

Given the following data for Company E:

• Current Assets: $100,000
• Current Liabilities: $50,000
• Total Assets: $500,000
• Total Liabilities: $300,000
• Net Income: $80,000
• Sales: $400,000

Requirements:

1. Calculate the Current Ratio.
2. Compute the Debt to Equity Ratio.
3. Determine the Return on Assets (ROA).
4. Calculate the Return on Equity (ROE).
5. Compute the Net Profit Margin.