A company has the following balance sheet items at the end of the year:

Assets:

• Cash $100,000
• Accounts Receivable $50,000
• Inventory $120,000
• Prepaid Rent $10,000
• Equipment $200,000

Liabilities:

• Accounts Payable $40,000
• Notes Payable $50,000
• Salaries Payable $30,000
• Rent Payable $5,000

Owners Equity:

• Capital Stock $150,000
• Retained Earnings $200,000

Calculate the following:

• Current Ratio
• Quick Ratio
• Debt to Equity Ratio
• Debt to Asset Ratio

Answer rating: 100% (QA)

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