Question

Shown below are selected data from the balance sheet of Compros, a small electronics store (dollar...

Shown below are selected data from the balance sheet of Compros, a small electronics store (dollar amounts are in thousands):

Cash $ 75

Accounts receivable $ 135

Inventory $ 240

Total assets $ 900

Current liabilities $ 300

Noncurrent liabilities $ 375

What is the quick ratio?

What is the current ratio?

What is the amount of working capital?

What is the debt ratio?

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Homework Answers

Answer #1

A

Total Quick Assets

$210

B

Current Liabilities

$300

C = A/B

Quick Ratio

0.7

Answer [1]

A

Total Current Assets

$450

B

Current Liabilities

$300

C = A/B

Current Ratio

1.5

Answer [2]

A

Total Current Assets

$450

B

Current Liabilities

$300

C = A - B

Working Capital

$150

Answer [3]

A

Total Liabilities

$675

B

Total Assets

$900

C = A/B

Debt Ratio

0.75

Answer [4]

--Workings

A

Cash

$75

B

Accounts receivables

$135

C

Inventory

$240

D = A+B+C

Total Current Assets

$450

E = D - C

Total Quick Assets

$210

F

Current Liabilities

$300

G

Non Current Liabilities

$375

H = F+G

Total Liabilities

$675
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