Following is the balance sheet of Solomon Company for Year 3:
SOLOMON COMPANY Balance sheet
Assets
Cash
Marketable securities
Accounts receivable
Inventory
Property and equipment
Accumulated depreciation
Total assets
Liabilities and Stockholders' Equity
Accounts payable
Current notes payable
Mortgage payable
Bonds payable
Common stock
Retained earnings
Total liabilities and stockholders' equity
$ 14,650
7,900
13,040
11,450
166,500
(12,200)
$ 201,340
$ 8,120
3,360
4,900
21,300
113,900
49,760
$ 201,340
The average number of common stock shares outstanding during Year 3 was 860 shares. Net income for the year was $14,500.
Required
Compute each of the following:
Note: Round your answer to 2 decimal places. For percentages, 0.2345 should be entered as 23.45.
Answer is complete but not entirely correct.
a. Current ratio
397.00 X
b. Earnings per share
$ 16.87
per
share
c. Quick (acid-test) ratio
3.01 X
d. Return on investment
7.20 %
e. Return on equity
23.53 %
f. Debt to equity ratio
2.27