Compute the specified ratios using Duluth Company’s balance sheet for Year 3.

Assets
Cash .................................................................................... $ 36,000
Marketable securities .......................................................... 24,000
Accounts receivable ............................................................. 50,000
Inventory ............................................................................... 44,000
Property and equipment ................................................... 320,000
Accumulated depreciation ................................................. (74,000)
Total assets ........................................................................ $400,000

Liabilities and Stockholders’ Equity

Accounts payable .............................................................. $ 23,000
Current notes payable ........................................................... 7,000
Mortgage payable .................................................................. 8,000
Bonds payable ...................................................................... 43,000
Common stock .................................................................... 200,000
Retained earnings ............................................................... 119,000
Total liabilities and stockholders’ equity ........................ $400,000

The average number of common stock shares outstanding during Year 3 was 880 shares. Net income for the year was $40,000.

Required

Compute each of the following and round computations to two decimal points:

a. Current ratio.

b. Earnings per share.

c. Quick (acid-test) ratio.

d. Return on investment.

e. Return on equity.

f. Debt-to-equity ratio.