Calculate the following 2010 financial ratios of Aggie Corporation usi

Calculate the following 2010 financial ratios of Aggie Corporation using the information given in Table 4-7:
i. current ratio
ii. acid test ratio
iii. debt ratio
iv. return on total assets
v. return on common equity

What will be an ideal response?

ANSWER

i. Current ratio = $48/$28 = 1.71
ii. Acid Test ratio = $22/$28 = 0.79
iii. Debt ratio = $46/$108 = 0.426
iv. Return on total assets = $28/$108 = 0.259
v. Return on Common Equity = $28/$62 = 0.45