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The Following Data Were Reported by Jupiter Company at Year-End

Question 144

Essay

The following data were reported by Jupiter Company at year-end:  Total assets $525,000 Quick assets 105,000 Non-current assets 375,000 Current liabilities 75,000 Long-term liabilities 75,000 Common stock (par $10) 170,000 Total owners’ equity 375,000\begin{array} { | l | r | } \hline \text { Total assets } & \$ 525,000 \\\hline \text { Quick assets } & 105,000 \\\hline \text { Non-current assets } & 375,000 \\\hline \text { Current liabilities } & 75,000 \\\hline \text { Long-term liabilities } & 75,000 \\\hline \text { Common stock (par \$10) } & 170,000 \\\hline \text { Total owners' equity } & 375,000 \\\hline\end{array} Compute the following ratios for the Company
(a) Debt to equity ratio:
(b) Current (working capital) ratio:
(c) Quick ratio:
(d) Which, if any , of the above are liquidity ratios?
(e) Which, if any, of the above are profitability ratios ?

Correct Answer:

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(a) $150,000/$375,000 = .40 or...

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