Using the information below, find the liquid ratio, acid test ratio , profit margin on sales, return on sales , return on equity, leverage, and inventory turnover .

Exhibit 3 Facebook's Income Statements (in millions of USD) Report Date December 31, 2014 December 31, 2013 Revenues $12,466 $7,872 Operating expenses 7,472 5,068 EBIT 4,994 2,804 Interest Other income (loss) EBT 4,910 2,754 Tax 1,970 1,254 Income from continuing operations 2,940 1,500 Other items (15) Net income 2,925 1,491 Source: Based on Facebook's 2014 Annual Report Page 57 and Yahoo Finance Facebook's Balance Sheets (in millions of USD) Report Date December 31, 2014 Assets December 31, 2013 $11,449 $11,199 Cash and equivalents Accounts receivable 1,678 1,109 Other current assets 793 512 Total current assets 13,670 13,070 Property, plant & equipment 3,967 2,882 Goodwill 17,981 839 Intangible assets 3,929 883 Other assets 638 221 Total assets 40,184 17,895 Liabilities 180 277 Short-term debt Accounts payable 378 268 Other current liabilities 866 555 Total current liabilities 1,424 1,100 Long-term debt 119 237 Other liabilities 2,545 1,088 Total liabilities 4,088 2,425 Common stock Retained earnings 6,099 3,159 Retained earnings 6,099 3,159 Paid in capital and other 29,997 12,311 Total equity 36,096 15,470 Total liabilities & equity 40,184 17,895 1. LIQUIDITY RATIOS: A company's ability to meet Current Assets Current Liabilities any's ability to meet obligations out of current assets. A firm's creditworthiness. Ability to pay immediate debts. ACID-TEST-RATIO: Cash + Accounts Receivable + Marketable Securities Current Liabilities Vieasures the cash, marketable securities (e.g. stocks, and bonds) and receivables of a um, compared to its current liabilities. 2. PROFITABILITY (PERFORMANCE) RATIO: a. PROFIT MARGIN ON SALES: Net Income after Taxes Number of Common Shares Outstanding Continued earnings, growth are well received by both investors and lenders. b. RETURN ON SALES: Net Income Net Sales Compares income to total sales. Data must be compared against competing firms in the industry. c. RETURN ON EQUITY: ribuano Net Income Total Owner's Equity Compares company's net income to its total owner's equity. 3. LEVERAGE Debt to assets Total Debt Total Assets The higher the ratio, the ratio, the more leveraged the organization 4. ACTIVITY RATIOS: a. Inventory Turnover: Cost of Goods Sold = COGS Average Inventory [Beginning Inventory + Ending Inventory/2