Table 4-4 Moderately Large Corporation Consolidated Balance Sheet Moderately Large Corporation Consolidaed Balance Sheet (in thousands except share data) Fiscal Year Ended Dec. 31, 2013 Dec 31, 2012 ASSETS Current assets: Cash and cash equivalents $ 1,369 $ 1,427 Accounts receivable, net 1,008 876 Inventories 1,489 481 Prepaid expenses and other current assets 157 126 Deferred income taxes, net 44 40 Total current assets 4,066 2,950 Property, plant and equipment, net 3,137 2,287 Other assets 168 161 TOTAL ASSETS $ 7,371 $ 5,398 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 429 242 Accrued compensation and related costs 104 98 Accrued taxes 132 141 Current portion of long-term debt 82 Total current liabilities 754 563 Long-term debt 2,630 1,830 Total liabilities 3,384 2,392 Shareholders' equity: Common stock ($0.1 par value) - authorized, 4,000,000 shares; issued and outstanding, 3,500,000. 350 350 Paid-in capital in excess of par 2,415 2,415 Retained earnings 1,222 241 Total shareholders' equity 3.987 3,006 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 7,371 S 5,398 $ 89 Given the balance sheet for Moderately Large Corporation (Table 4-4) answer the following: a. For each year calculate the following ratios: current, quick, debt-to-asset and debt-to-equity. For 2013 Current Ratio Quick ratio Debt to asset Debt to equity - For 2012 1 Current Ratio = Quick ratio Debt to asset Debt to equity- In a written explanation, state what each of these ratios mean. Explain why it will be important for your future career to understand and apply financial analysis. Compare the ratios for the two-year period and determine if the MLC is sufficiently liquid. How well is the MLC managing its debt? b. C. d