Question
Analyze the provided balance sheet and answer the questions: Assets: Cash: $20 million Accounts Receivable: $30 million Inventory: $50 million Property, Plant, and Equipment: $100
- Analyze the provided balance sheet and answer the questions: Assets:
- Cash: $20 million
- Accounts Receivable: $30 million
- Inventory: $50 million
- Property, Plant, and Equipment: $100 million
- Total Assets: $200 million Liabilities:
- Accounts Payable: $10 million
- Short-term Debt: $15 million
- Long-term Debt: $50 million
- Total Liabilities: $75 million Equity: $125 million
a. Calculate the quick ratio. b. Determine the current ratio. c. Compute the debt to equity ratio. d. What percentage of total assets is financed by equity?
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Intermediate Accounting
Authors: James D. Stice, Earl K. Stice, Fred Skousen
16th Edition
324376375, 0324375743I, 978-0324376371, 9780324375749, 978-0324312140
