| | 2020 | 2019 |
| Name of Ratio | Calculation | Ratio | Calculation | Ratio |
| 1 | Currentratio | 39271 ÷48839 | 0.80 | 21760 ÷37930 | 0.57 |
| 2 | Debt tototal assets | 54839 ÷116071 | 47.20% | 37,930 ÷88160 | 43% |
| 3 | Grossprofit rate | 262931 ÷254375 | 54.10% | 254375 ÷462500 | 55.00% |
| 4 | Profitmargin | 37002 ÷485625 | 7.60% | 42000 ÷462500 | 9.10% |
| 5 | Returnon assets | 37002 ÷102116 | 36.2% | 42000 ÷60670 | 69.2% |
| 6 | Returnon common stockholders' equity | (37002 -18000) ÷ 55731 | 34.1% | (42000 -16800) ÷ 36705 | 68.7% |
(a) Comment your finds from the above ratios.
(b) What impact would borrowing an additional $20,000 to buymore equipment have on each of the ratios in (a) above, assumingthat no changes are expected on the income statement and balancesheet? Comment on your findings.
