Question: c. Use the following information to answer items i, ii, and iii : At December 31 a company's records show the following information: Cash Accounts

c. Use the following information to answer items i, ii, and iii : At December 31 a company's records show the following information: Cash Accounts Receivable Inventory Prepaid Insurance Long-term Assets Accounts Payable Notes Payable due in 10 months Wages Payable Long-term Liabilities Stockholders' (Owner's) Equity $ 10,000 30,000 80,000 6,000 200,000 30,000 25,000 5,000 70.000 196,000 Calculate for: i. The Company's Current Ratio (3 marks) ii. The Quick Ratio or Acid test ratio (3 marks) iii. Working capital (4 marks) iv. What is the times interest earned? (4 marks)
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