STU Ltd. reports the following for 2023:

• Cash: $10,000
• Accounts Receivable: $20,000
• Inventory: $30,000
• Current Liabilities: $40,000
• Total Assets: $100,000
• Total Equity: $50,000

Requirements:

1. Calculate the current ratio.
2. Calculate the quick ratio.
3. Compute the debt to asset ratio.
4. Assess the company’s liquidity and solvency positions.
5. Compare the company’s ratios to industry benchmarks if the industry average current ratio is 1.5 and quick ratio is 1.0.