Calculate current ratio and quick ratio


Problem: Use the following information to answer the questions below:

Toyota
Balance Sheet
12/31/XX
(in thousands of dollars)

Cash    $150 Accounts Payable    $100
Accounts Receivable 250    Notes Payable 250
Inventory    600    Other Current Liabilities    50
Total Current Assets $1,000 Total Current Liabilities $400

Total Fixed Assets    1,500    Long Term Debt    $1,100
Common Stock    800
Retained Earnings    200
Total Assets    $2,500 Total Liab. & Equity    $2,500

Number of shares outstanding = 10,000 shares
Price per Share = $100

Enron Corporation
Income Statement
for the year ending 12/31/XX
(in thousands of dollars)

Net sales    $ 2,700
Operating Costs    (2,350)
Depreciation    (150)
Interest Expense    (70)

EBT    130
Income Tax (40%)    (52)

Net Income    $78

Dividends to Common Stock = $58

Calculate each of the following ratios. Be sure to give the complete equation as well as the solution:

  • Current ratio
  • Quick ratio
  • Total Debt/Total Asset Ratio
  • Inventory Turnover Ratio
  • ROE
  • TIE
  • EPS
  • Net Profit Margin
  • Total Assets Turnover Ratio

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Accounting Basics: Calculate current ratio and quick ratio
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