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A firm has the following balance sheet items. Calculate the firm's Current Ratio, Quick Ratio, and Debt to Equity Ratio. Balance Sheet: Cash: $5,000
A firm has the following balance sheet items. Calculate the firm's Current Ratio, Quick Ratio, and Debt to Equity Ratio. Balance Sheet: Cash: $5,000 Accounts Receivable: $10,000 Inventory: $15,000 Current Liabilities: $20,000 Long-term Debt: $30,000 Shareholders' Equity: $35,000 Requirements: 1. Calculate the Current Ratio. 2. Calculate the Quick Ratio. 3. Calculate the Debt to Equity Ratio. 4. Analyze the firm's liquidity based on the calculated ratios.
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Basic Finance An Introduction to Financial Institutions Investments and Management
Authors: Herbert B. Mayo
10th edition
1111820635, 978-1111820633
