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XYZ Inc. provided the following balance sheet data as of December 31, 2023: Assets Amount ($) Cash and Cash Equivalents 200,000 Accounts Receivable 150,000 Inventory

XYZ Inc. provided the following balance sheet data as of December 31, 2023:

Assets

Amount ($)

Cash and Cash Equivalents

200,000

Accounts Receivable

150,000

Inventory

250,000

Property, Plant, and Equipment

500,000

Total Assets

1,100,000


Liabilities and Shareholders' Equity

Amount ($)

Accounts Payable

100,000

Long-term Debt

300,000

Shareholders' Equity

700,000

Total Liabilities and Equity

1,100,000

Requirements:

  1. Calculate the current ratio.
  2. Determine the debt-to-equity ratio.
  3. Compute the working capital.
  4. Evaluate the liquidity position of XYZ Inc.
  5. Analyze the leverage situation of XYZ Inc.

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