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 Calculate the...

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A firm has the following balance sheet items. Calculate the firm's Current Ratio, Quick Ratio, and Debt

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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
Accounts Receivable: $10,000
Inventory: $15,000
Current Liabilities: $20,000
Long-term Debt: $30,000
Shareholders' Equity: $35,000

Requirements:

Calculate the Current Ratio.
Calculate the Quick Ratio.
Calculate the Debt to Equity Ratio.
Analyze the firm's liquidity based on the calculated ratios.

Posted Date: Jun 04, 2024 11:38 AM

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A firm has the following balance sheet items. Calculate the firm's Current Ratio, Quick Ratio, and Debt

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