Sanchez Company had the following year-end balances: Cash $325,000 Marketable Securities 175,000 Accounts Receivable, net 450,000 Inventory 225,000 Prepaid Expenses 110,000 Plant Assets, net 640,000 Accounts Payable 375,000 Long-term Notes Payable 365,000 Common Stock 645,000 Retained Earnings 540,000 Net income for the year was $305,000 a. Calculate the Current Ratio b. Calculate the Acid-Test Ratio c. Calculate the Debit to Equity Ratio d. Calculate the Debt Ratio
Sanchez Company had the following year-end balances:
Cash $325,000
Marketable Securities 175,000
Inventory 225,000
Prepaid Expenses 110,000
Plant Assets, net 640,000
Accounts Payable 375,000
Long-term Notes Payable 365,000
Common Stock 645,000
Net income for the year was $305,000
a. Calculate the
b. Calculate the Acid-Test Ratio
c. Calculate the Debit to Equity Ratio
d. Calculate the Debt Ratio
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