Using the Following Amounts Taken from the Balance Sheet and Income

question 19

Essay

Using the following amounts taken from the balance sheet and income statement of a business,compute the measures listed below.After each answer,write "L" if it is a measure of liquidity or "P" if it is a measure of profitability.Round to two decimal places.
$$\begin{array} { l r l r } \text { Current assets } & \$ 6,000 & \text { Average stockholders' equity } & \$ 15,000 \\\text { Average total assets } & 30,000 & \text { Net sales } & 19,500 \\\text { Current liabilities } & 4,500 & \text { Net income } & 2,400 \\\text { Long-term liabilities } & 10,500 & &\end{array}$$

a. Return on assets
b. Working capital
c. Return on equity
d. Current ratio

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Definitions:

Physical Growth

The process of bodily changes including increases in height, weight, and muscle mass, typically observed during childhood and adolescence.

Development

The process of growth or advancement, often involving an improvement in abilities, behaviors, or progress in various aspects of life.

Infancy

The period in a child's life from birth to the age of walking and talking.

Lobes of the Brain

The regions of the cerebral cortex of the brain, divided into the frontal, parietal, occipital, and temporal lobes, each responsible for various functions.