write 4 5 paragraphs on finance and accounting
Consider the following financial information:
- Total Equity = $300,000
- Total Liabilities = $200,000
- Average Inventory = $110,000
- Cost of Goods Sold = $3,000,060
- Current Liabilities = $160,000
- Current Assets = $400,000
- Net Income = $120,000
Given this financial information, answer the following questions:
- Compute the Debt to Equity ratio, and provide a paragraph outlining what this means to a given business (why it is important).
- Compute the Inventory Turnover ratio, and provide a paragraph outlining what this means to a given business (why it is important).
- Compute the Current Ratio, and provide a paragraph outlining what this means to a given business (why it is important).
- Compute the Return on Equity ratio, and provide a paragraph outlining what this means to a given business (why it is important).
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