Part 4. Using your knowledge of liquidity and risk ratios. Calculate the following financial ratios on the balance sheet attached. (8A). Working Capital Quick Ratio (Acid Test) Asset Coverage Ratio Debt to Equity A B C D E F Corporate Finance Institute. All rights reserved. 1 New Co 2 Balance Sheet 3 [USD $ thousands] 4 2014 2015 2016 2017 2018 8 167,971 5.100 4,806 7,805 185,682 181,210 5,904 5,513 9,601 202.228 183,715 6,567 5,170 9,825 205,277 211,069 7,117 5,998 10,531 234,715 239,550 7,539 5.682 11,342 264,112 5 Assets 6 Current assets: 7 Cash 8 Accounts Receivable 9 Prepaid expenses 10 Inventory 11 Total current assets 12 13 Property & Equipment 14 Goodwill 15 Total Assets 16 17 Liabilities 18 Current liabilities: 19 Accounts Payable 20 Short Term Debt 45,500 3,580 234,762 42,350 3,460 248,038 40,145 3,910 249,332 38,602 3,870 277,187 37,521 3,850 305,483 3,902 1,320 4.800 1,541 4,912 1,662 5,265 1.865 5,671 1,899 D E F G B 1,540 6,762 1,560 7,901 1,853 8,427 1,952 9,082 1,724 9,294 50,000 5,526 62,288 50,000 5,872 63,773 30,000 5,565 43,992 30,000 6,051 45,133 30,000 5,909 45,203 A 21 Unearned revenue 22 Total current liabilities 23 24 Long-term debt 25 Other long-term liabilities 26 Total Liabilities 27 28 Shareholder's Equity 29 Equity Capital 30 Retained Earnings 31 Shareholder's Equity 32 Total Liabilities & Shareholder's Equity 33 34 Check 35 170,000 2.474 172,474 234,762 170,000 14.265 184,265 248,038 170,000 35,340 205,340 249,332 170,000 62,053 232,053 277,187 170,000 90,280 260,280 305,483 0.000 0.000 0.000 0.000 0.000 36 37