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Question 8: For STU Inc., the balance sheet data are as follows: Item Amount (in $ thousands) Cash 1,000 Marketable Securities 2,000 Accounts Receivable 6,000

Question 8:

For STU Inc., the balance sheet data are as follows:

Item

Amount (in $ thousands)

Cash

1,000

Marketable Securities

2,000

Accounts Receivable

6,000

Inventory

8,000

Total Current Assets

17,000

Property, Plant, Equipment

13,000

Total Assets

30,000

Accounts Payable

5,000

Notes Payable

4,000

Long-Term Debt

6,000

Total Liabilities

15,000

Common Stock

8,000

Retained Earnings

7,000

Total Liabilities and Equity

30,000

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

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