Question 1: Balance Sheet and Liquidity Debt Assets Current Assets: Current Liabilities: Cash $400 Accounts payable $600 Accounts Rec $300 Notes payable $200 Inventories $1,300 Accruals $200 Total Current Assets $1,000 $2,000 Total Current Liabilities $10,000 Long-term Debt Fixed Assets $5,000 Total Liabilities $6,000 Equity (Owners): $6,000 Total Assets $ Total Liabilities & Equity $12,000 la. Identity Total Assets for the firm. 1b. Compute the firm's Net Working Capital 1c. Find the Current Ratio of the firm. 1d. Provide an interpretation of the firm's liquidity. Other firms in this industry have a current ratio of about 1.34. Assess the ratio you calculated in ic in comparison to 1.34. What information does this provide? What is a desirable target current ratio? Why