2. If a firm has $150,000 in assets, $100,000 in stockholders equity, and $50,000 in

liabilities, what is the ratio of total liabilities to total assets for this firm? Is it acceptable

or not?

3. A firm has total current assets of $60,000, an inventory valued at $50,000, and current

liabilities of $20,000. What is its current ratio? What is its quick ratio? Evaluate this

firms liquidity.

Remember: rule of thumb: quick ratio is 1:1 and for current ratio is 2:1