Write 4-5 paragraphs on Finance and accounting

I’m studying for my Business class and need an explanation.

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:

  1. Compute the Debt to Equity ratio, and provide a paragraph outlining what this means to a given business (why it is important).
  2. Compute the Inventory Turnover ratio, and provide a paragraph outlining what this means to a given business (why it is important).
  3. Compute the Current Ratio, and provide a paragraph outlining what this means to a given business (why it is important).
  4. 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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