Answer:
a. Current Ratio = (Cash + Receivables + Inventory) / Accounts Payable
Current Ratio = $36,400+$69,200+$99,300 / $141,500
Current Ratio = 1.448056537102473
Current Ratio = 1.45
b. Acid-test Ratio = (Cash + Receivables) / Accounts Payable
Acid-test Ratio = ($36,400+$69,200)/$141,500
Acid-test Ratio = 0.7462897526501767
Acid-test Ratio = 0.75
c. Debt to Assets Ratio = (Accounts Payable + Mortgage Payable) / Total Assets
Debt to Assets Ratio = $78,100 +$141,500/ $442,600
Debt to Assets Ratio = 0.4961590600994126
Debt to Assets Ratio = 49.62%
d. Return on Asset = Net Income / Total Assets
Return on Asset = $25,000 / $442,600
Return on Asset = 0.0564844103027564
Return on Asset = 56.48%
