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Ratio

No matter what I do I cannot understand the calculating quick ratio, debt ratio, and return on equity. See attached file for full problem description.

Assets Liabilities & Owners' Equity
2001 2002 2001 2002

Cash & Marketable Sec. 60 49 Accounts Payable 350 384
Accts. Receivable 406 448 Notes Payable 138 108
Inventory  600 640 Accruals  30 30
Total Current Assets  1,066 1,137 Total Current Liab. 518 522
Long-Term Debt 838 813
Fixed Assets Total Liabilities 1,356 1,335
Gross Fixed Assets 1,130 1,280 Common Stock 150 150
Less:Acc. Depreciation 307 384 Paid In Capital 200 200
Net Fixed Assets 823 896 Acc. Retained Earning 183 348
Total Assets  1,889 2,033 Total Owners' Equity 533 698
Total Liab. & Owners' Equity 1,889 2,033

In 2002, net sales of $3,200, cost of goods sold of $2,048, depreciation expense of $77, interest expense of $74, net income of $275, and paid dividends of $110.

What is the Quick Ratio for 2002?

What is the debt ratio for 2002?

What is the Return on Equity for 2002?

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Solution Summary

The solution explains how to calculate the quick ratio, debt ratio and return on equity.

$2.19