The Coastal Company had revenues of $120,000 in the last fiscal period. The cost-of-goods were $62,000, operational expenses were $15,000, interest was $8,000 and tax was $11,900. What is the return on equity if the companys total assets and total liabilities are $630,000 and $320,000, respectively?

Group of answer choices

3.7%

7.2%

7.5%

13.9%

Investment analysts employ ratio and trend analysis when assessing a companys financial statements. Some trends reveal company improvement and others suggest possible red flags trends that reveal possible deterioration in operational success. Which of the following would suggest a red flag?

(1)Rising accounts receivable versus sales ratio

(2)Rising inventory versus sales ratio

(3)Rising debt versus total asset ratio

(4)Rising shareholder equity to total assets ratio

Group of answer choices

1 and 2

3 and 4

2 and 4

1, 2 and 3