Financing and accounting

Consider the following financial information:
• Total Equity = $500,000
• Total Liabilities = $300,000
• Average Inventory = $150,000
• Cost of Goods Sold = $4,000,060
• Current Liabilities = $200,000
• Current Assets = $600,000
• Net Income = $100,000
Given this financial information, answer the following questions:

  1. Compute the Debt to Equity ratio, and provide a paragraph outlining what this means to a given business (why it is important).
  2. Compute the Inventory Turnover ratio, and provide a paragraph outlining what this means to a given business (why it is important).
  3. Compute the Current Ratio, and provide a paragraph outlining what this means to a given business (why it is important).
  4. Compute the Return on Equity ratio, and provide a paragraph outlining what this means to a given business (why it is important).

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