Use the Following Information to Calculate the Liquidity and Profitability

question 116

Essay

Use the following information to calculate the liquidity and profitability ratios listed below.Round to two decimal places.
$\begin{array}{lrlr}\text { Average stockholders equity } & \$ 14,000 & \text { Net mcome } & \$ 2,100 \\\text { Average total assets } & 21,000 & \text { Net sales } & 17,500 \\\text { Current assets } & 15,000 & \text { Total liabilities } & 10,500 \\\text { Current liabilities } & 10,000 & &\end{array}$
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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Definitions:

Organizations

Groups of people who come together to achieve specific goals, following a particular structure and set of regulations.

Formalized

The process of establishing official procedures or rules within an organization or system.

Centralize

The process of concentrating control and decision-making authority in a central location or among a small group of individuals.

Span Of Control

The number of subordinates that a manager or supervisor can directly control or oversee effectively.