In: Finance
Gutweed, Inc. has total equity of $133,000 and total assets of $225,000. What is the debt-equity ratio?
0.97 | ||
0.82 | ||
0.69 | ||
0.76 |
Fennel, Inc. has inventory of $2,200, current liabilities of $3,100, cash of $1,900, and accounts receivable of $3,900. What is the cash ratio?
0.45 | ||
0.61 | ||
0.72 | ||
0.53 |
Question 1)
Debt equity = debt/equity
given equity is 133000
Total assets is 225000
Debt = Total assets - equity
= (225000-133000)/133000 = 0.69
Question 2)
Cash ratio is = Cash and cash equivalents /current liabilties
= 1900/3100 = 0.61