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The balance sheets for Prufrock Corporation are: The income statement for Prufrock is: Questions Solutions light gray boxes. Short-Term Solvency, or Liquidity, Measures Current ratio

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The balance sheets for Prufrock Corporation are: The income statement for Prufrock is: Questions Solutions light gray boxes. Short-Term Solvency, or Liquidity, Measures Current ratio Quick ratio Cash ratio Leng-Tera Selvency Measares Total debr ratio Debt-equity ratio Equity multiplict Tinses interest earned Cash coverage Asset Management, or Tureover, Measures Inventory tamover Days' sales in inventory Receivablen burnover Days' vales in receivables Total asset furnover Prefitability Measures Profit margin Retarn on assets (ROA) Retum en equity (ROE) \begin{tabular}{|l|l|l|l|l|l|l|l|l|} \hline & & & & & & & & \\ \hline & & & & & & & & \\ \hline \end{tabular} Since ROA and ROE are istended to measure performance over a prior period, oflen the average assets and average equity. respectively, are ased in the calculation. The ROA and ROE using the averages in the denoninator are: ROA with average assets ROE with average equily Market Value Measures Market value ratios use other numbers such as shares outstanding and share priee that are not found on the balanee shect. The other numbers we Becd are: Shares outstanding Price per share Earnings per share (EPS) Price-camings ratio (PE) Price-sales ratio Market-to-book ratio 33 (in millions) 115

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