Assets Liabilities and Equity

Current Assets Current Liabilities

Cash 34 Accounts payable 32

Accounts receivable 20 Notes payable/ short-term debt 6

Inventories 16

Total current assets 70 Total current liabilities 38

Long- Term Assets Long- Term Liabilities

Net property, plant and equipment 130 Long- Term debt 129

Total long-term assets 130 Total Long- Term liabilites 129

Total Liabilities 167

Stockholder's Equity 33

Total assets 200 Total Liabilites and Stockholder's Equity 200

1. The table above shows a balance sheet for a certain company. If the company buys new property, plant, and equipment today using its entire cash balance, what will its net working capital be?

1. -$2 million
2. $2 million
3. -$4 million
4. $4 million

2. What is the Williams Companys quick ratio (approximately)?

1. 1.37 times
2. 1.42 times
3. 1.54 times
4. 3.00 times
5. None of the above.

3. What is the Williams Company Equity Multiplier ( approximately)?

1. 3 times
2. 4 times
3. 5 times
4. 6 times