Tenacle Acres Company and Subsidiaries Income Statement for 2015 (000 dollars)
Sales	$94,001
Cost of Goods Sold	46,623
Gross Profit	47,378
Selling and Administrative Expenses	28,685
Depreciation and R&D Expense (both tax deductibles)	5,752
Interest Expense	12,941
Interest Income	48
Earnings Before Taxes (EBT)	427
Income Taxes	13,320
Net Income (NI)	4,700
Earnings per Share	8,620
	1.72
Tenacle Acres Company and Subsidiaries Balance Sheet as of End of 2015 (000 dollars)
Cash	5,534
Marketable Securities	952
Accounts Receivable (gross)	14,956
Less Allowance for Bad Debts	211
Accounts Receivable (net)	14,745
Inventory	10,733
Prepaid Expenses	3,234
Plant and Equipment (net)	57,340
Land	1,010
Long-Term Investments	2,503
Total Assets:	66,971
Liabilities
Accounts Payable	3,253
Notes Payable
Accrued Expenses	6,821
Bonds Payable	2,389
Stockholders' Equity
Common Stock	8,549
Retained Earnings	45,959
Total Liabilities and Equity	66,971
Problem 5-7
Calculate the following liquidity ratios for the end of 2015. [Please show work] a. Current ratio b. Quick ratio Comment on the companys ability to pay off short-term debts.