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.