2020) sec. 01 A firm's long-term assets = $100,000, total assets = $400,000, inventory = $50,000 and current liabilities = $200,000. What are the firm's current ratio and quick ratio? Formulas Current Ratio = CA/CL Quick Ratio = (CA - Inventory) / CL Cash Ratio = Cash / CL w Total Debt Ratio = (TA - TE) / TA Debt/Equity = TD / TE Equity Multiplier = TA/TE = 1 +D/E Long-term debt ratio = LTD/LTD + TE) Times Interest Earned - EBIT / Interest Cash Coverage = (EBIT + Depreciation) / Interest Inventory Turnover = Cost of Goods Sold / Inventory Days' Sales in Inventory = 365 / Inventory Turnover Receivables Turnover Sales / Accounts Receivable e rch