The condensed financial statements of Source Electronics for 2014 are presented below.

Source Electronics Source Electronics

Balance Sheet Income Statement

December 31, 2014 For the Year Ended December 31, 2014

Assets Revenues $650,000

Current assets Expenses

Cash and short-term Cost of goods sold 360,000

investments $ 25,000 Selling and admin expenses 150,000

Accounts receivable 32,000 Interest expense 30,000

Inventories 43,000 Total expenses 540,000

Total current assets 100,000 Income before income taxes 110,000

Property, plant, and Income tax expense 33,000

equipment (net) 320,000 Net income $ 77,000

Total assets $420,000

Liabilities and Stockholders' Equity

Current liabilities $ 60,000

Long-term liabilities 220,000

Common stockholders' equity 140,000

Total liabilities and

stockholders' equity $420,000

Additional data as of December 31, 2013: Inventory = $47,000; Total assets = $390,000; Common stockholders' equity = $110,000

Instructions: Compute the following listed ratios for 2014 showing supporting calculations. Display answers to two decimal places.

1. Current ratio = ___________________________________________________________ .

2. Debt to assets ratio = ______________________________________________________ .

3. Times interest earned = ____________________________________________________ .

4. Inventory turnover = ______________________________________________________ .

5. Profit margin = __________________________________________________________ .

6. Return on common stockholders' equity = ______________________________________ .

7. Return on assets = ________________________________________________________ .