3. Use the balance sheets of Glover shown below to calculate the following ratios for 2017 (round to the hundredths): (4 points) (a) Current ratio. (b) Acid-test ratio. (c) Debt ratio. (d) Equity ratio.

Glover Company

Balance Sheets

December 31, 2017 and 2016

2017 2016

Assets:

Cash $43,000 $22,000

Accounts receivable 40,000 42,000

Merchandise inventory 61,000 52,000

Prepaid insurance 6,000 9,000

Long-term investments 47,000 20,000

Plant assets (net) 218,000 218,000

Total assets $415,000 $363,000

Liabilities and Equity:

Current liabilities $52,000 $75,000

Long-term liabilities 55,000 36,000

Common stock 150,000 150,000

Retained earnings 158,000 102,000

Total liabilities and equity $415,000 $363,000