COMPLETE SOLUTION. AND CORRECT ANSWERS ASAP

EVALUATION -4 A. Answer the following exercises. Liabilities and Stockholders' Equity Cash P 120,000.00 Accounts Payable P 70,000,00 Marketable Securities P 35,000.00 Short-term notes P 55,000,00 Accounts receivable P 45,000.00 Current liabilities P 125,000.00 Inventories P 130,000.00 Long-term debt P 2,700,000,00 Current assets P 330,000.00 Total liabilities P 2,825,000.00 Equipment P 2,970,000.00 Common stock P 500,000.00 Buildings P 1,600,000.00 Retained earnings P 1,575,000.00 Fixed Assets P 4,570,000.00 Stockholders equity P 2,075,000,00 Total Assets P 4,900,000.00 Total liabilities and equity P 4,900,000.00 1. Current assets is PHP2,000, current liabilities is PHP3,500. What is current ratio? 2. Inventory is PHP150. Accounts payable is PHP450. Cash and accounts receivable total PHPBOO. What is the current ratio? Quick ratio? 3. If current ratio is 1.7, what is the total accounts receivable if cash is PHP20,000, inventory is PHP7,500, and accounts payable is PHP30,000. 4. Cash is 30% of total current assets. If current ratio is 2.3, what is the new current ratio if total non-cash current assets grow by 50%? 5. What is a good current ratio? 1? 27 0.5? 6. Can a current ratio be lower than the quick ratio? 7. Is a high current ratio always good? Is a low current ratio always bad? 8. What factors affect company's decisions in managing current ratio? 9. If company A has current ratio of 1.3 while company B has a current ratio of 2.3, which is a better company