<span>Given: Net profit before tax = $208,000 Total equity = $500,000 Total assets = $330,000 Total liabilities = $150,000 Current assets = $64,000 Current liabilities= $45,000
Return on Equity = Net Income / Shareholder's equity = 208,000 / 500,000 = 0.416 or 41.6%.
Return on Assets = Net Income / Total Assets = 208,000 / 330,000 = 0.63 or 63%
Debt ratio = Total Liabilities / Total Assets = 150,000 / 330,000 = 0.4545 or 45.45%
Debt to equity ratio = Total liabilities / Total Equity = 150,000 / 500,000 = 0.30 or 30%
Current ratio = Current Assets / Current Liabilities = 64,000 / 45,000 = 1.42</span>
