Use the Following Information to Calculate the Liquidity and Profitability

question 34

Essay

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

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Definitions:

Offshore Supplier

A supplier located in a different country, often chosen for cost advantages or specific expertise.

Supplier's Currency

Refers to the currency in which a supplier prefers to conduct transactions, possibly influencing international trade and payment methods.

Countertrade

A method of trade in which goods or services are exchanged directly for other goods or services without the use of money.

Foreign Exchange

The exchange of one currency for another or the conversion of one currency into another currency.