1. Working Capital Ratio

Hale and Carter Machine Shop has a loan for equipment that was purchased. At the end of December 31, 2021 the company had $100,000 of current assets and $125,000 of current liabilities. Calculate the working capital ratio:

_______________

2. Cash Ratio

Sophie's Palace restaurant is looking to remodel its dining room. The owner is looking at borrowing $100,000 for the funding the remodel and has the following on it's balance sheet:

Cash $10,000

Cash Equivalents $2,000

Accounts Payable $5,000

Current Taxes Payable $1,000

Current Long-Term Liabilities $10,000

Calculate the cash ratio ____________

3. Acid-Test Ratio

Carol's Clothing Store is applying for a loan to remodel their building. The bank asks Carol for a detailed balance sheet so they can compute the quick ratio/acid test. Carol's balance sheet has the following:

Cash $10,000

Accounts Receivable $5,000

Inventory $5,000

Stock Investments $1,000

Prepared Taxes $5,00

Current Liabilities $15,000

Calculate the quick ratio ____________