The condensed balance sheet and income statement for Marjoram Company are presented below.
Marjoram Company
Balance Sheet
At December 31, 2009
Cash $19,000
Temporary investments in marketable securities 35,000
Accounts receivable (net) 48,400
Merchandise inventory 70,600
Property, plant and equipment (net) 250,000
Intangible assets 12,400
Total assets $435,400
Current liabilities 108,400
11% Bonds payable, long-term 100,000
Paid-in capital 70,000
Retained earnings 157,000
Total liabilities and equity $435,400
Marjoram Company
Income Statement
For the Year ended December 31,2009
Sales $704,000
Cost of goods sold 422,400
Gross profit 281,600
Operating expenses 166,200
Operating income 115,400
Interest expense 11,000
Income before income taxes 104,400
Income taxes 31,320
Net income $73,080
a. Compute the current ratio for Marjoram Company
b. Compute the acid-test ratio for Marjoram Company
c. Compute the debt-to-equity ratio for Marjoram Company
d. Compute the time interest earned ratio for Marjoram Company
e. Compute the return on shareholder's equity ratio for Marjoram Company