1. Question 5

   12.5 Points

   Use the following ABC Company Balance Sheet for questions 5 - 7

   

   What is the Current Ratio for ABC?

   1. 1.0:1

   2. 1.43:1

   3. 3.14:1

   4. 5.9:1

2. Question 6

   12.5 Points

   What is the Acid Test/Quick Ratio for ABC?

   1. 1.0:1

   2. 1.43:1

   3. 3.14:1

   4. 5.9:1

3. Question 7

   12.5 Points

   What is the Common Size entry for Inventory for ABC?

   1. 29.3

   2. 54.5%

   3. 100.0%

   4. None of the above

4. Question 8

   12.5 Points

   What is the Debt to Total Assets ratio for ABC?

   1. 34.1%

   2. 50.0%

   3. 51.2%

   4. 71.4%

S 5,000 4,000 Cash Accounts Receivable Inventory Other Accounts Payble Short term notes Current portion of LTD Other $3,000 2,000 1,000 1,000 12,000 1,000 Total Current Assets S 22,000 Total Current Liabilities $ 7,000 PP&E 14,000 15,000 2,000 13,000 Long Term Debt Total Liabilities Accumulated Depreciation PP&E, net $ 21,000 Common Stock 6,000 14,000 Retained Earnings Total Stockholder's Equity Goodwill 6,000 20,000 Total Assets S 41,000 Total Liabilities and Equity $ 41,000