Given the balance sheet for the Moderately Large Corporation (Table 44), answer the following:

a. For each year, calculate the following ratios: current, quick, debt-to-asset, and debt-to-equity.

b. In a written explanation, state what each ratio means.

c. Compare the ratios for the 2-year period and determine if the MLC is sufficiently liquid.

d. How well is the MLC managing its debt?

Table 44 Moderately Large Corporation Consolidated Balance Sheet

Moderately Large Corporation Consolidaed Balance Sheet (in thousands except share data)
Fiscal Year Ended			Dec. 31, 2013	Dec. 31, 2012
ASSETS
Current assets:
	Cash and cash equivalents		$1,369	$1,427
	Accounts receivable, net		1,008	876
	Inventories		1,489	481
	Prepaid expenses and other current assets		157	126
	Deferred income taxes, net		44	40
		Total current assets	4,066	2,950
Property, plant and equipment, net			3,137	2,287
Other assets			168	161
	TOTAL ASSETS		$7,371	$5,398
LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities:
	Accounts payable		$429	$242
	Accrued compensation and related costs		104	98
	Accrued taxes		132	141
	Current portion of long-term debt		89	82
		Total current liabilities	754	563
Long-term debt			2,630	1,830
		Total liabilities	3,384	2,392
Shareholders equity:
	Common stock ($0.1 par value)authorized, 4,000,000 shares; issued and outstanding, 3,500,000.		350	350
	Paid-in capital in excess of par		2,415	2,415
	Retained earnings		1,222	241
		Total shareholders equity	3,987	3,006
	TOTAL LIABILITIES AND SHAREHOLDERS EQUITY		$7,371	$5,398