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Summary financial information for Paragon Company is as follows. Dec. 31, 2014 Dec. 31, 2013 Current assets $ 200,000 $ 220,000 Plant assets 1,040,000 780,000
Summary financial information for Paragon Company is as follows.
Dec. 31, 2014 Dec. 31, 2013
Current assets $ 200,000 $ 220,000
Plant assets 1,040,000 780,000
Total assets $1,240,000 $1,000,000
1. State whether each of the following is an indicator of a companys liquidity,
solvency, or profitability (18 points)
(a) Price-earnings ratio.
(b) Inventory turnover.
(c) Debt to assets ratio.
(d) Times interest earned.
(e) Return on common stockholders equity.
(f) Current cash debt coverage.
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