Single choice 52) Company X has total assets of CU5,000 and its only liabilities are CU2,000 of long-term interest bearing debt. Calculate the gearing ratio. The gearing ratio is 0.28 The gearing ratio is 0.4 The gearing ratio is 0.6 The gearing ratio is 0.67 Single choice 53) You have been approached by a company director who wants to have a better understanding of the liquidity position of their business. They provide you with the following information: - Property, plant and equipment = CU40,000 - Inventory = CU30,000 - Receivables = CU20,000 - Cash = CU5,000 - Payables = 15,000 - Long-term loans = 25,000 Calculate the cash ratio. The cash ratio is 0.2 The cash ratio is 0.33 The cash ratio is 1.67 The cash ratio is 3.0