SHOW YOUR WORK FOR CALCULATION PROBLEMS

Given the following information, calculate: (a) current ratio, (b) quick/acid-test ratio, (c) Total debt or leverage ratio, (d) Return on Assets, (e) Net Margin, (f) Return on Equity, (g) Asset Turnover, (h) Earnings Retention Ratio

SUMMARY BALANCE SHEET

ASSETS LIABILITIES & SH EQUITY

Cash & Equivalents $2,000 Accounts Payable $6,000

Accounts Receivable 7,000 Notes Payable 4,000

Inventory 5,000 Current Liabilities $10,000

Current Assets $14,000

Prepaid Expense $2,000 Long-term Debt $9,000

P, P & E (net) $20,000 SH Equity $17,000

Total Assets $36,000 Total Liab & SH Eq $36,000

SUMMARY OPERATING PERFORMANCE

Sales $50,000

Net Income 5,400

Dividends Paid 1,350