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:

Object Permanence

The understanding that objects continue to exist even when they cannot be observed directly.

Sensorimotor

Relating to or involving both sensory and motor functions or pathways, often used in reference to a stage in early child development.

Preoperational

A stage in Piaget's theory of cognitive development where children from ages 2 to 7 have increasing mental representation but do not yet understand concrete logic.

Concrete Operational

This term refers to Piaget's stage of cognitive development where children aged 7 to 11 years can think logically about concrete events and understand the concept of conservation.