Given the following data:

2001 2000 Cash $ 30,000 $ 40,000 Retained earnings 175,000 225,000 Current liabilities 17,000 16,000 Invested capital 600,000 600,000 Accounts receivable 27,500 38,000 Inventories 45,000 47,000 Fixed assets, net ? ?

Required

a. Rearrange these data into classified balance sheets.

b. Find the missing Fixed Assets amounts necessary to balance each balance sheet.

c. Evaluate the firm’s liquidity, using the ratios described in this chapter.

d. Calculate the firm’s asset management and debt management ratios. Evaluate the results.