Refer to the trial balance information in BE 3–5. Calculate the 

(a) Current ratio, 

(b) Acid-test ratio,

(c) Debt to equity ratio.

BE 3–5

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Account Title Debits Credits $ 55,000 39,000 Cash Accounts receivable Inventory Prepaid insurance Equipment Accumulated depreciation 45,000 15,000 100,000 $ 34,000 Patent (net) 40,000 Accounts payable 12,000 Interest payable Notes payable (due in 10 years) Common stock 2,000 100,000 70,000 Retained earnings 76,000 Totals $294,000 $294,000