A company has total assets of $150,000; total liabilities of $50,000 and total equity of $100,000

1. A company has total assets of $150,000; total liabilities of $50,000 and total equity of $100,000. What is this company's debt-to-equity ratio?

0.5

2. Profitability Measures a company's ability to:

earn an adequate return

3. Rose Company reported net income of $24,000, net sales of $400,000, and average assets of $600,000. What is the profit margin ratio?

6%

4. A company has earnings per share of $10 and the market price per common share is $50. What is this company's price-earnings ratio?

5

5. This section of an analysis report has forecasts, estimates, interpretations, and conclusions drawing on all sections of the report.

Inferences

6. What measure reflects the difference between current assets and current liabilities?

Working Capital