1.23 0.81 1.18 0.97 32.0% 84.3% 62.9% 45.2% 1.55 0.63 0.92 1.0 The current ratio

Question

       1.23
       0.81
       1.18
       0.97

       32.0%
       84.3%
       62.9%
       45.2%

       1.55
       0.63
       0.92
       1.0

The current ratio at the end of 2012 was: Pioneer Industries gathered the following year-end data (in thousands) for 2012 and 2011 Current Assets Long-Term Assets Current Liabilities Long-Term Liabilities Owners' Equity Net Sales Cost of Goods Sold Gross Margin Net Income 2012 2011 $345 $365 790 720 280 310 410 440 445 335 830 790 455 435 375 355 120 105

Explanation / Answer

The current ratio at the end of 2012 was: Current Assets / Current Liabilities

= $345 / $280

= 1.23

The gross margin percentage for 2012 was: Gross Margin / Net Sales * 100

   = $375 / $830 * 100

   = 45.20%

The debt to equity ratio for 2012 was: Long term Liabilities / Owner's equity

   = $410 / $445

= 0.92

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