Chapter 14-HOMEWORK 3. Selected recent balance sheet and income statement information for the clothing companies: Import Plus and Red Circle Corporation follows: Red Circle Corporation Import Plus (in $000s) S 16,505 42,860 318,897 321,486 765,973 148,806 (118,504) (in millions) Cash Accounts receivable Inventory Total current liabilities Total liabilities Total equity Pre-tax income (loss) Interest expense S 5,500 20,898 14,358 22,654 72,965 30,694 7,744 1,767 Calculate the quick ratio for Import Plus A)0900 B).1847 C) 4887 D) 1.505 E) 2.02 E) 2.02 4. Selected recent balance sheet and income statement information for the clothing companies: Import Plus and Red Circle Corporation follows: Red Circle Corporation Import Plus (in $000s) S 6,505 32,860 318,897 421,486 765,973 148,806 18,504 in millions) 5,500 20,898 14,358 22,654 72,965 30,694 12,745 2,767 Cash Accounts receivable Inventory Total current liabilities Total liabilities Total equity Pre-tax income Interest expense Calculate the times-interest-earned ratios for Red Circle A) 3.00 B) 3.25 C) 4.78 D) 4.50 E) 5.61