A recent balance sheet of Sweet as Sugar included the following items, among others. (Dollar amounts are stated in thousands.)

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 49,630

Marketable securities (short-term) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,910

Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,330

Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,000

Prepaid expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 5,850

Retained earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350,000

Notes payable to banks (due within one year) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,000

Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,900

Dividends payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800

Accrued liabilities (short-term) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,500

Income taxes payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . 8,500

The company also reported total assets of $600,000, total liabilities of $90,000, and a return on total assets of 20 percent.

Instructions

a. Compute Sweet as Sugar’s:

(1) Quick assets,

(2) Current assets, and

(3) Current liabilities.

b. Compute Sweet as Sugar’s:

(1) Quick ratio,

(2) Current ratio,

(3) Working capital, and

(4) Debt ratio. (Round to one decimal place.)

c. Discuss the company’s liquidity from the viewpoints of

(1) Short-term creditors,

(2) Long-term creditors, and

(3) Stockholders.