shown below are selected data from the financial statement of hamilton stores,a retail lighting store.

from the balance sheet:

cash.............................................................................................................................................................$ 35,000

accounts receivable.............................................................................................................................. 175,000

inventory..................................................................................................................................................... 225,000

plant assets (net of accumulated depreciation)..................................................................... 550,000

current liabilities...................................................................................................................................... 190,000

total stockholder's equity................................................................................................................... 500,000

total assets................................................................................................................................................ 1,300,000

from the income statement :

net sales...................................................................................................................................................... $2,400,000

cost of goods sold................................................................................................................................. 1,800,000

operating expenses................................................................................................................................ 495,000

interest expense ...................................................................................................................................... 80,000

income tax expense................................................................................................................................. 4,000

net income.................................................................................................................................................... 21,000

from the statement of cash flows:

net cash provided by operating activities

(including interest paid of $72,000).................................................................................................$ 50,000

net cash used in investing activities................................................................................................... (54,000)

financing activities:

amounts borrowed ................................................................................................... $56,000

repayment of amounts borrowed...................................................................... (25,000)

dividends paid.............................................................................................................. (24,000)

net cash provided by financing activities...................................................................................... 7,000

net increase in cash during the year............................................................................................... $ 3,000

a)compute the following (round to one decimal place):

1.current ratio

2.working capital

3.Quick ratio

4.Debt ratio

b)comment on these measurements and evaluate hamilton's short term debt paying ability.

c)compute the following ratios(assume that the year end amounts of total assets and total stockholder's equity also represent the average amount throughout the year):

1.return on assets

2.return on equity

d)comment on the company's performance under these measurements.explain why the return on assets and return on equity are so different.