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Use the Following Information to Calculate the Liquidity and Profitability

question 160

Essay

Use the following information to calculate the liquidity and profitability ratios listed below. Round to two decimal places.
 Average owner’s equity $9,250 Net income $1,500 Average total assets 18,000 Net sales 15,625 Current assets 11,250 Total liabilities 8,750 Current liabilities 7,500\begin{array}{lrlr}\text { Average owner's equity } & \$ 9,250 & \text { Net income } & \$ 1,500 \\\text { Average total assets } & 18,000 & \text { Net sales } & 15,625 \\\text { Current assets } & 11,250 & \text { Total 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 ratio
f. Return on assets
g. Asset turnover

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Definitions:

Non-Bonding Electrons

Non-bonding electrons, also known as lone pairs, are valence electrons on an atom that are not involved in chemical bonding and significantly influence molecular shape and polarity.

Formal Charge

Formal charge is a concept in chemistry that represents the charge assigned to an atom in a molecule, assuming that electrons in chemical bonds are shared equally between atoms.

Non-Bonding Electrons

Electrons in an atom or molecule that are not involved in chemical bonding and occupy the outermost shells or subshells.

Formal Charge

A theoretical charge assigned to an atom in a molecule representing the electron count difference from its neutral state.

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