Use the following information to calculate the liquidity and profitability ratio

ID: 2503996 • Letter: U

Question

Use the following information to calculate the liquidity and profitability ratios listed below. Round to two decimal places. Show all calculations.

Average stockholders equity: $9,250

Average total assets; 18,000

Current assets:11,250

Current liabilities:7,500

Net income:1,500

Service Revenue:15,625

Total Liabilities: 8,750

Cash flow from operating activities: 1,800

a. Current ratio

b. Cash flow yield

c. Return on equity

d. profit margin

e. debt to equity ratio

f. return on assets

g. asset turnover

a.current ratio=current assests/current liabilities =11250/7500=1.5

b.cash flow yield=cash flow from operating activities/Average stockholders equity=1800/9250=0.195

c.return on equity=net income/share holder equity=1500/9250=0.162

d)profit margin=net income/service revenue=1500/15625=0.096

e)debt to equity ratio=Total Liabilities/shareholder equity=7500/9250=0.81

f)return on assets =net income/total assests=1500/11250=0.1333

g)asset turnover =revenue /total assests=15626/18000=0.868

Please rate my hard work thanks

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