1.Use the following information to answer items 5 - 7:

At December 31 a company's records show the following information:

Cash $10,000

Account Receivable 30,000

Inventory 80,000

Prepaid Insurance 6,000

Long term assets 200,000

Accounts Payable 30,000

Notes Payable due in 10 months 25,000

Wages Payable 5,000

Long term Liabilities 70,000

Stockholder's Equity 196,000

2.The company's working capital is

$60,000

$66,000

$196,000

7.The company's current ratio is

1.0 : 1

2.0 : 1

2.1 : 1

8.The company's quick ratio is

0.7 : 1

1.0 : 1

2.0 : 1