Accounting. ### Balance Sheet of Rooney Company for Year 3#### Rooney Company**Balance Sheet****Assets**- **Cash**: $14,750- **Marketable Securities**: $7,820- **Accounts Receivable**: $13,460- **Inventory**: $10,800- **Property and Equipment**: $169,000- **Accumulated Depreciation**: $(12,500)**Total Assets**: $203,330**Liabilities and Stockholders’ Equity**- **Accounts Payable**: $8,330- **Current Notes Payable**: $3,600- **Mortgage Payable**: $4,700- **Bonds Payable**: $21,180- **Common Stock**: $114,600- **Retained Earnings**: $50,920**Total Liabilities and Stockholders’ Equity**: $203,330---**Additional Information:**- The average number of common stock shares outstanding during Year 3 was 850 shares.- Net income for the year was $15,800. **Problem Set: Financial Ratios Calculation****Instructions:** Compute each of the following financial ratios. Ensure to round your answers to two decimal places.a. **Current Ratio** ➔ Calculate the current ratio.b. **Earnings per Share** ➔ Calculate the earnings per share.c. **Quick (Acid-Test) Ratio** ➔ Calculate the quick ratio.d. **Return on Investment** ➔ Calculate the return on investment as a percentage (%).e. **Return on Equity** ➔ Calculate the return on equity as a percentage (%).f. **Debt to Equity Ratio** ➔ Calculate the debt to equity ratio as a percentage (%).**Note:** Each of the ratios provides insight into different aspects of a company's financial health. Accuracy is key in these calculations to make informed decisions based on the financial data analyzed.

Ratio analyses are used to compare the data of two or more years. It helps for the decision-making of the management.“Since you have posted a question with multiple sub-parts, we will solve the first three subparts for you. To get the remaining sub-part solved please repost the complete question and mention the sub-parts to be solved.”. Answer a. Current ratio = Current assets / Current liabilities Current assets = 14,750 + 7,820 + 13,460 + 10,800 = 46,830 Current liabilities = 8,330 + 3,600 = 11,930 Current ratio = 46,830 / 11,930 = 3.925 Answer b. Earnings per share = Net income / Average number of outstanding shares = 15,800 / 850 = 18.588 or 15.89 Answer c. Quick ( acid-test) ratio = ( Current assets – Inventory ) / Current liabilities = ( 46,830 – 10,800 ) / 11,930 = 3.02