Classified Balance Sheet, Current Ratio and Quick Ratio Gateway is a producer of personal computers. The company's balance sheet for December 31, 2002 (slightly modified) contained the following items ($ in thousands):

Property and equipment, net Accrued compensation and royalties Cash & cash equivalents Noncurrent assets Other noncurrent liabilities Inventories Other current liabilities Other current assets Accounts payable Marketable securities Accounts receivable Intangibles, net Accrued liabilities Stockholders' equity $ 481,011 56,684 465,603 49,732 127,118 88,761 240,315 602,073 278,609 601,118 ? 23,292 364,741 1,441,940 1. Prepare a December 31, 2002 classified balance sheet for Gateway. Include the correct amount for accounts receivable. 2. Compute the company's working capital, current ratio and quick ratio. Compute the quick ratio as (current assets inventory) current liabilities. 3. Comment on the company's current and quick ratios. In 2001, the current ratio was 1.85 and the quick ratio was 1.75. 4. During 2002, Gateway increased its marketable securities by $166,063. Suppose the company had not increased its marketable securities but had instead increased its long-term investments (classi- fied as Noncurrent Assets) by $166,063. How would this have affected Gateway's current ratio? How would it have affected the company's liquidity?