Problem: The following data are taken from the financial statements of Mercer Company. The data are in alphabetical order. Consider balances as averages if applicable.
Accounts Payable $22,000 Net Income $48,000
Accounts Receivable $60,000 Net Sales $400,000
Total Assets $275,000 Other Current Liabilities $12,000
Cash $35,000 Salaries Payable $ 6,000
Gross Profit $190,000 Stockholders' Equity $110,000
Compute the following:
(A) Current Ratio
(B) Debt to total assets ratio
(C) Profit Margin ratio
(D) Return on assets ratio
(E) Net Working Capital