Question 2

Balance Sheet Evaluation: Below is the balance sheet for ABC Inc. as of December 31, 2023.

Assets	Amount ($)
Current Assets	150,000
Fixed Assets	350,000
Total Assets	500,000

Liabilities and Equity	Amount ($)
Current Liabilities	100,000
Long-term Debt	200,000
Equity	200,000
Total Liabilities and Equity	500,000

Requirements:

1. Calculate the Current Ratio.
2. Compute the Debt to Equity Ratio.
3. Determine the Equity Ratio.
4. Assess the impact on the Debt to Equity Ratio if the company takes an additional loan of $50,000.