For Sutton Manufacturing, determine the current ratio and the quick ratio. Are these values acceptable? Why or why not?

Assets Liabilities Current assets Current liabilities Cash $ 870 Notes payable $ 500 Accounts 450 Accounts payable 600 receivable Inventory 1200 Accruals 200 Prepaid expenses 60 Taxes payable 30 Current portion 100 Total current assets 2580 long-term debt Net fixed assets Total current Land 1200 liabilities 1430 Plant and 3800 Long-term debt 2000 equipment Officer debt 200 (less -1000 (subordinated) accumulated Total liabilities 3630 depreciation) Equity Other assets Common stock 1670 Notes receivable 200 Capital surplus 400 Intangibles 120 Retained earnings 1200 Total equity 3270 Total assets 6900 Total liabilities 6900 and equity