Chapter 17, Problem 12E

To determine

Concept Introduction:

Current ratio:

Current ratio helps in measuring short-term liquidity of a firm. Current ratio is computed on the basis of current assets and current liabilities.

Profit margin:

Profit margin refers to a profitability meausrement which helps in knowing the percentage of profitability on the basis of net sales. Profit margin is calculated on the basis of net income and net sales.

Computation of current ratio and profit margin.