Question

1. A company makes a net profit before tax of $12,000 and has $20,000 in total equity. Calculate the company's return on equity as a percentage. (0.5 points)

2. )A company makes a net profit before tax of $5,000 and has total assets with a value of $10,000. Calculate the company's return on assets as a percentage. (0.5 points)

3. A company has $1,400 in liabilities and $1,500 in assets. Calculate the company's debt ratio as a percentage. (0.5 points)

4. A company has $1,400 in liabilities and $1,500 in equity. Calculate the company's debt to equity ratio as a percentage (0.5 points)

5. A company's current assets are $30,000 and current liabilities are $19,000. Calculate the company's current ratio as a percentage. Does the company have enough assets to pay its liabilities? (1.0 points)

Answer 1

Hi there
Net profit before tax÷total equity
12,000÷20,000=0.6×100=60%

Net profit before tax÷total assets
5,000÷10,000=0.5×100=50%

Current liability÷current assets
1,400÷1,500=0.9333×100=93.33%

Current liability÷equity
1400÷1500=0.9333×100=93.33%

Current assets÷current liabilities
30,000÷19,000=1.57×100=157%

Hope it helps

Answer 2

Answer: Your answer

Net profit before tax÷total equity

12,000÷20,000=0.6×100=60%

Net profit before tax÷total assets

5,000÷10,000=0.5×100=50%

Current liability÷current assets

1,400÷1,500=0.9333×100=93.33%

Current liability÷equity

1400÷1500=0.9333×100=93.33%

Current assets÷current liabilities

30,000÷19,000=1.57×100=157%

Explanation: