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Use the Following Information to Calculate the Liquidity and Profitability

question 30

Essay

Use the following information to calculate the liquidity and profitability ratios listed below.Round to two decimal places.
 Average stockholders’ equity 9,250 Net income 1,500 Average total as5ets 18,000 Net sales 15,625 Curent as5ets 11,250 Tatal liabilities 8,750 Current liabilities 7,500\begin{array} { l r l r } \text { Average stockholders' equity } & 9,250 & \text { Net income } & 1,500 \\\text { Average total as5ets } & 18,000 & \text { Net sales } & 15,625 \\\text { Curent as5ets } & 11,250 & \text { Tatal liabilities } & 8,750 \\\text { Current liabilities } & 7,500 &\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


Definitions:

Intermediaries

Entities or individuals that act as a middleman in the distribution chain between producer and end-user, facilitating transactions or dissemination of products.

Distribution

The process by which goods are transported from the producer or supplier to the consumer or retail outlet.

Direct To Consumer

A business approach where companies sell directly to consumers, bypassing traditional retail intermediaries or channels.

Telemarketing

The direct marketing of goods or services to potential customers over the telephone.

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