Question 3:

Given the balance sheet of DEF Ltd. as follows:

Item	Amount (in $ thousands)
Cash and Equivalents	5,000
Marketable Securities	3,000
Accounts Receivable	7,000
Inventory	10,000
Total Current Assets	25,000
Net Fixed Assets	20,000
Total Assets	45,000
Current Liabilities	12,000
Long-Term Debt	18,000
Common Equity	15,000
Retained Earnings	15,000
Total Liabilities and Equity	45,000

1. Compute the Current Ratio.
2. Calculate the Total Debt to Total Assets Ratio.
3. Determine the Equity Multiplier.
4. Compute the Fixed Asset Turnover Ratio if the sales were $75,000.
5. Calculate the Days Sales Outstanding (DSO) if annual credit sales were $84,000.