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Workshop 5 Problems Student Q Search Sheet Review View * OBOU Home Insert Page Layout Formulas Data Calibri (Body) - 12 - A A Paste B IV A J12 x fx E Wrap Text 2 2 " A . General $ - % Insert Delete Format = = = = = Merge & Center ) Sort & Conditional Formet Formatting as Table Cell Styles 2. Filter L M N O P Q R S 1 5.3 Ratio Analysis Paints: 4 items 3 points = 12 points 3 Directions: Compute the following ratios based on the information below 5 Current Assets 6 Long Term Assetsinet) 7 Total Assets 8 Current Liabilities 9 Long-Term Liabilities 10 Total Liabilities 11 Common Stock and Retained Eamings 12 Total Liabilities and Stockholders equity 850,000 2,200,000 3,050,000 650.000 1.500.000 2,150,000 900,000 3.950,pad 15 Working Capital 16 Current Ratio 17 Debt to Assets Ratio 19 Debt to Equity Ratio 21 Helpful Resources 23 Principles of Accouting 24 Page 285 304 26 Ratio Analysis Video Problem 5.1 Problem 5.2 Problem 5.3 Problem 5.4 Problem 5.5 Problem 5.6 + Ready 6 - + 90%

Answer 1

Working capital = Current assets - Current Liabilities = 850,000-650,000 = 200,000

Current Ratio = Current assets/Current liabilities = 850,000/650,000 = 1.31

Debt to assets ratio = Total Liabilities/Total assets = 2,150,000/3,050,000 = 0.70

Debt to equity ratio = Total Liabilities /Total stockholders equity = 2,150,000/900,000 = 2.39