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Presented Below Are the Comparative Balance Sheets of Big Apple

Question 8

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Presented below are the comparative balance sheets of Big Apple, Inc., at December 31, 2014, and 2013. Sales for the year ended December 31, 2014, totaled $890,000. Presented below are the comparative balance sheets of Big Apple, Inc., at December 31, 2014, and 2013. Sales for the year ended December 31, 2014, totaled $890,000.   Required: A) Calculate ROI for 2014. B) Calculate ROE for 2014. C) Calculate working capital at December 31, 2014. D) Calculate the current ratio at December 31, 2014. E) Calculate the acid-test ratio at December 31, 2014. Required:
A) Calculate ROI for 2014.
B) Calculate ROE for 2014.
C) Calculate working capital at December 31, 2014.
D) Calculate the current ratio at December 31, 2014.
E) Calculate the acid-test ratio at December 31, 2014.

Correct Answer:

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A) ROI = Margin * Turnover = (Net Income...

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