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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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