Question 3

DEF Services Company has provided the following balance sheet information as of December 31, 2023:

• Cash: $100,000
• Accounts Receivable: $300,000
• Inventory: $150,000
• Prepaid Expenses: $50,000
• Total Current Assets: $600,000
• Property, Plant, and Equipment: $1,200,000
• Total Assets: $1,800,000
• Accounts Payable: $200,000
• Short-term Loans: $100,000
• Other Current Liabilities: $50,000
• Total Current Liabilities: $350,000
• Long-term Debt: $500,000
• Total Liabilities: $850,000
• Total Equity: $950,000

Requirements:

1. Calculate the Current Ratio.
2. Determine the Quick Ratio.
3. Calculate the Debt to Equity Ratio.
4. Determine the Working Capital.
5. Calculate the Fixed Assets to Total Assets Ratio.