3. Farnham Co. has the following balance sheet: Assets Current assets Cash Trade accounts receivable Inventory Payments in advance Long-term assets At cost Accumulated depreciation Total assets Liabilities & equity capital Current liabilities Trade accounts payable Bank loan Long-term liabilities Total liabilities Equity Common stock Retained earnings Total liabilities and shareholders' equity $ 10,000 250,000 100,000 40,000 (e) (f) $450,000 250.000 $200,000 100,000 $ 10,000 190.000 Required (a) Calculate the current ratio. (b) Calculate the quick ratio. (c) (d) Is the company liquid or illiquid? Calculate the debt to equity ratio. Calculated the debt to assets ratio. Comment on the level of the company's leverage. $400,000 200,000 $600.000 $300,000 100,000 $400,000 200,000 $600.000