Name: Table 4-1: Garland Company Balance Sheet Assets Cash and marketable securities $500,000 Accounts receivable 800,000 1,350,000 Inventories 50,000 Prepaid expenses $2,700,000 Total current assets 5,000,000 Fixed assets Less: accum depr (2,000,000) $3,000,000 Net fixed assets $5,700 ooo Total assets Liab $400,000 Accounts payable 900,000 Notes payable 75,000 Accrued taxes $1,375,000 Total current liabilities Long-term debt 1,200,000 owner's equity 3,125,000 Total liabilities and owner's $5,700,000 equity Net sales (all credit) $8,000,000 Less: Cost of goods sold 3,500,000 Selling and administrative (2,000,000) expense Depreciation expense 250,000 Interest expense (150,000 Earnings before taxes 2,100,000 Income taxes 700,000 Net income $1,400,000 1. Based on the information in Table 4-1, the current ratio is a. 1.96. b. 1.05 c, 2.89 d. 1.21 2. Based on the information in Table 4-1, the quick ratio is b. 0.67 d, 0.98 Based on the information in Table 4-1, the average collection period is a. 36.5 days b. 10.5 days c. 47.3 days d. 29.8 days