Presented Below Are Financial Statements for Brownsville Industries $\begin{array}{lr}\text { Prior year data }\\\text { Total Assets } & \$ 525,000 \\\text { Shareholders' Equity } & \underline{220,000}\end{array}$

Essay

Presented below are financial statements for Brownsville Industries:
$$\begin{array}{c}{ \text { Brownsville Industries } } \\\quad \text {Balance Sheet } \\\quad \text {At June 30}\\\begin{array} { l c } \text { Cash } & \$ 26,000 \\\text { Short-Term Investments }& 51,000 \\\text { Accounts Receivable (net) } & 125,000\\\text { Merchandise Inventory } & 82,400 \\\text { Property, Plant, and Equipment, net }& 325,000 \\\text { Intangible Assets }& \underline { 19,500 } \\\text { Total Assets } & \underline { \$628,900}\\\\\text { Current Liabilities } & \$ 97,500 \\\text { 11\% Bonds payable, long-term } & 200,000 \\\text { Common Stock } & 10,000 \\\text { Paid in Capital in excess of par } & 40,000 \\\text { Retained Earnings } & \underline { 281,400 } \\\text { Total Liabilities and Equity } & \underline { \$ 628,900 }\end{array}\end{array}$$

$\begin{array}{c}\text {Brownsville Industries }\\\text {Income Statement}\\\text { For the Year Ended June 30}\\\begin{array}{|l|r|}\hline \text { Sales } & \$ 750,000 \\\hline \text { Cost of Goods Sold } & 395,000 \\\hline \text { Gross Profit } & \$ 355,000 \\\hline \text { Operating Expenses } & 155,400 \\\hline \text { Operating Income } & \$ 199,600 \\\hline \text { Interest Expense } & \underline{22,00} \\\hline \text { Income before Income Taxes } & \$ 177,600\\\hline \text { Income Taxes } &\underline{53,280} \\\hline \text { Net Income } & \$ 124,320\\\hline\end{array}\end{array}$

$\begin{array}{lr}\text { Prior year data }\\\text { Total Assets } & \$ 525,000 \\\text { Shareholders' Equity } & \underline{220,000}\end{array}$

Compute the following ratios
a. Current ratio
b. Debt to Equity Ratio
c. Interest Coverage Ratio(Assume interest expense equals interest paid.)
d. Return on Assets
e. Financial Leverage
f. Return on Equity
What do these ratios reveal about the financial condition of Brownsville Industries?