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Use the Following Information to Calculate the Liquidity and Profitability

Question 116

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Use the following information to calculate the liquidity and profitability ratios listed below.Round to two decimal places.
 Average stockholders equity $14,000 Net mcome $2,100 Average total assets 21,000 Net sales 17,500 Current assets 15,000 Total liabilities 10,500 Current liabilities 10,000\begin{array}{lrlr}\text { Average stockholders equity } & \$ 14,000 & \text { Net mcome } & \$ 2,100 \\\text { Average total assets } & 21,000 & \text { Net sales } & 17,500 \\\text { Current assets } & 15,000 & \text { Total liabilities } & 10,500 \\\text { Current liabilities } & 10,000 & &\end{array}
a. Current ratio
b. Working capital
c. Return on equity
d. Profit margin
e. Debt to equity
f. Return on assets
g. Asset turnover

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a.1.5 ($15,000 ÷ $10,000)
b.$5,000 ($15,...

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