4) Given the balance sheet for Moderately Large Corporation (Table 4-4) answer the following: a) For each year calculate the following ratios: current, quick, debt-to-asset and debt-to-equity. b) In a written explanation, state what each of these ratios mean. c) Compare the ratios for the two-year period and determine if the MLC is sufficiently liquid. d) How well is the MLC managing its debt? TABLE 4-4 Moderately Large Corporation Consolidated Balance Sheet Moderately Large Corporation Consolidaed Balance Sheet (in thousands except share data) Dec. 31, 2013 Fiscal Year Ended Dec. 31, 2012 ASSETS Current assets: Cash and cash equivalents Accounts receivable, net Inventories Prepaid expenses and other current assets Deferred income taxes, net Total current assets Property, plant and equipment, net Other assets TOTAL ASSETS $1,427 876 481 126 40 2.950 2.287 161 $5,398 $1,369 1,008 1,489 157 44 4,066 3,137 168 $7,371 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $429 Accrued compensation and related costs 104 Accrued taxes 132 Current portion of long-term debt 89 Total current liabilities 754 Long-term debt 2,630 Total liabilities 3,384 $242 98 141 82 563 1,830 2.392 350 350 Shareholders' equity: Common stock ($0.1 par value)-authorized, 4,000,000 shares, issued and outstanding, 3,500,000. Paid-in capital in excess of par Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 2,415 1,222 3,987 $7,371 2.415 241 3,006 $5,398