1 calculate the current ratio 2 calculate the debt to


Use the following information to answer items 1-3: SHOW YOUR WORK

At December 31 a company's records show the following information:

                          Cash                                              $10,000

                           Accounts Receivable                   30,000

                          Inventory                                     30,000

                          .Prepaid Insurance                         6, 000

                          Long-term Assets                        120,000

                          Accounts Payable                          30,000

Notes Payable due in 10 months    25,000

                         Wages Payable                                5,000

                           Long-term Liabilities                   100,000

Stockholders' (Owner's) Equity      36,000

                           Net Income                                   18,000

1. Calculate the current ratio

2. Calculate the Debt to Equity ratio

3. Calculate the Return on Assets

4. Calculate the Return on Equity

Solution Preview :

Prepared by a verified Expert
Business Management: 1 calculate the current ratio 2 calculate the debt to
Reference No:- TGS02515148

Now Priced at $20 (50% Discount)

Recommended (96%)

Rated (4.8/5)