The Question to be Answered

The following items are shown in the balance sheet of ABC Shareholding Company by the end of 2018:

Accounts	$		Accounts	$
Cash	197,000		Marketable securities	153,000
Accounts receivable	410,000		Inventories	500,000
Prepaid Expenses	97,000		Total current liabilities	777,000
Intangible Assets	203,000		Property, Plant & Equipment	2,350,000
Total assets	6,776,000		Bonds payable	1,000,000
Debentures	900,000		Preferred stock($100 par)	1,400,000
Common stock ($10 par)	2,600,000		Paid-in capital in excess of par	80,000
Retained earnings	210,000		Treasury stock (cost method)	191,000

Instructions: Based on the above information, show both (Formulas & Calculation) for each of the following part items listed below:

PART 1: (4 Points)

Calculation of Totals

(1): Total Liquid (Quick) Assets

Formula
Calculation

(2): Total Stockholders Equity (Unadjusted)

Formula
Calculation

(3): Total Capitalization

Formula
Calculation

(4): Total Capital Employed

Formula
Calculation

PART 2: (6 Points)

Calculation of Ratios & Interpretation

Note: You can interpret each ratio briefly by Arabic language.

(1): Working Capital:

Formula
Calculation
Interpretation

(2): Current Ratio:

Formula
Calculation
Interpretation

(3): Cash Ratio (More Relax Form)

Formula
Calculation
Interpretation

(4): Equity Multiplier:

Formula
Calculation
Interpretation

(5): Debt Ratio:

Formula
Calculation
Interpretation

(6): Book Value per Share of Common Stock

Formula
Calculation
Interpretation