Criss Products Corporation has been disappointed with its operating results for the past two years.

LO 7 Ratio Analysis: Liquidity and Profitability As accountant for the company, you have the following information available to you:

Total assets and shareholders' equity at the beginning of \(20 \times 1\) were 90,000 and 80,000 , respectively.
REQUIRED 1. Calculate the following measures of liquidity for \(20 \times 1\) and 20x2:

(a) working capital and

(b) the current ratio. Comment on the differences between the years.
2. Calculate the following measures of profitability for \(20 \times 1\) and \(20 \times 2\) :

(a) profit margin,

(b) asset turnover,

(c) return on assets,

(d) debt to equity, and

(e) return on equity. Comment on the change in performance from \(20 \times 1\) to \(20 \times 2\).

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20x2 20x1 Current Assets 45,000 35,000 Total Assets 145,000 110,000 Current Liabilities 20,000 10,000 Long-Term Liabilities 20,000 Shareholders' Equity 105,000 100,000 Net Sales 262,000 200,000 Net Profit 16,000 11,000