Q) For the following balance sheet, calculate the a) current ratio and B) debt-to-equity ratio

(4 pts.)

Assets			Liabilities
Current Assets Cash Inventory Accounts receivable Non-current Assets Machinery & equipment	$4,600 $4,400 $9,800 $19,800		Current Liabilities Accounts payable Short term loans Long-term Liabilities Long term loans	$5,600 $8,400 $20,800
			Shareholders equity	...
Total assets	$.................		Total liabilities & Shareholders equity	$.................

Q) Fill out the balance sheet for the following hypothetical company: (a-b-c-d-e-f each 1 pt.; total: 6 pts.). Assume:

• accounts receivable decreased from 2014 to 2015 by 25%
• inventory increased from 2014 to 2015 by 100%

ASSETS 12/31/2014 12/31/2015

Cash $ 100,000 $ 200,000 (f)

Accounts receivable $ 300,000 $ 200,000

Inventory $ 800,000 $ __________

Total Current Assets $ __________ $ __________

Long term assets $ 1,000,000 $ 900,000

Total Long-term Assets $ __________ $ __________

TOTAL ASSETS $ __________ (a) $ __________

LIABILITIES

Accounts payable $ 300,000 $ 500,000

Short term debt $ 900,000 $ 1,600,000

Total Current Liabilities $ __________ $ __________

Long-term debt $ 500,000 $ 0

Total Long-term Liabilities $ __________ $ __________

TOTAL LIABILITIES $ __________ $ __________ (e)

SHAREHOLDERS EQUITY

Retained earnings $ __________ (c) $ 150,000

Capital stock $ 500,000 $ __________ (d)

TOTAL SHAREHOLDERS EQUITY $ __________ (b) $ __________

TOTAL LIAB. & SH.HOLDERS EQUITY $ __________ $ __________