Calculating ratios:
Response to the following problem:
The current asset section of the Excalibur Tire Company's balance sheet consists of cash, marketable securities, accounts receivable, and inventories. The December 31, 2016, balance sheet revealed the following:
Inventories $ 840,000
Total assets $2,800,000
Current ratio 2.25
Acid-test ratio 1.2
Debt to equity ratio 1.8
Required:
Determine the following 2016 balance sheet items:
1. Current assets
2. Shareholders' equity
3. Noncurrent assets
4. Long-term liabilities