Compute the specified ratios using Kale Company’s balance sheet at December 31, 2004.

The average number of common stock shares outstanding during 2004 was 880 shares. Net income for the year was \($15,000\) .

Required:
Compute each of the following:

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

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Assets Cash Marketable Securities Accounts Receivable Inventory Property and Equipment Accumulated Depreciation Total Assets $ 15,000 8,000 13,000 11,000 170,000 (12,500) $204,500 Equities Accounts Payable $ 8,500 Current Notes Payable 3,500 Mortgage Payable 4,500 Bonds Payable 21,500 Common Stock, $50 Par 110,000 Paid-In Capital in Excess of Par Value 4,000 Retained Earnings Total Liabilities and Stockholders' Equity 52,500 $204,500