Consider the following financial information for SMJ Corporation for the year ended March 31, 2014:
Assets:
3/31/14
Cash $5,000
Inventory $2,500
Long-term (non current) Assets $6,000
Total Assets $13,500
Accounts Payable $1,200
Long-term (non-current) Liabilities $4,500
Total Liabilities $5,700
Total Stockholders Equity $7,800
Sales $16,000
Salaries Expenses $11,000
Other Expenses $3,500
Required:
Compute the current ratio. (current assets/current liabilities)
Compute the quick ratio (acid test). (current assets minus inventory/current liabilities)
Compute the profit margin ratio (net income/net sales)
Compute the debt/total assets ratio
Compute Return on Assets (assume that assets at the beginning of the year were $14,300)