The following data were reported by Universe Company at year-end:
$$\begin{array} { l r }
\text { Total assets } & \$ 525,000 \
\text { Quick assets } & 105,000 \
\text { Noncurrent assets } & 375,000 \
\text { Current liabilities } & 75,000 \
\text { Long-term liabilities } & 75,000 \
\text { Common stock (par } \$ 10 ) & 170,000 \
\text { Total owners' equity } & 375,000
\end{array}$$ Calculate each of the following ratios:
A.Debt-to-equity
B.Current ratio
C.Quick ratio
D.Which,if any,of the above are liquidity ratios?
E.Which,if any,of the above are profitability ratios?

Question

The following data were reported by Universe Company at year-end:
 $$\begin{array} { l r } 
\text { Total assets } & \$ 525,000 \
\text { Quick assets } & 105,000 \
\text { Noncurrent assets } & 375,000 \
\text { Current liabilities } & 75,000 \
\text { Long-term liabilities } & 75,000 \
\text { Common stock (par } \$ 10 ) & 170,000 \
\text { Total owners' equity } & 375,000
\end{array}$$ Calculate each of the following ratios:
A.Debt-to-equity
B.Current ratio
C.Quick ratio
D.Which,if any,of the above are liquidity ratios?
E.Which,if any,of the above are profitability ratios?

Quizplus · Accepted Answer

The Answer of The following data were reported by Universe Company at year-end:
 $$\begin{array} { l r } 
\text { Total assets } & \$ 525,000 \
\text { Quick assets } & 105,000 \
\text { Noncurrent assets } & 375,000 \
\text { Current liabilities } & 75,000 \
\text { Long-term liabilities } & 75,000 \
\text { Common stock (par } \$ 10 ) & 170,000 \
\text { Total owners' equity } & 375,000
\end{array}$$ Calculate each of the following ratios:
A.Debt-to-equity
B.Current ratio
C.Quick ratio
D.Which,if any,of the above are liquidity ratios?
E.Which,if any,of the above are profitability ratios?

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