Compute Sweet Tooth quick ratio

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Question - A recent balance sheet of Sweet Tooth, Inc., included the following items, among others. (Dollar amounts are stated in thousands.)

Cash $50,230

Marketable securities (short-term) 55,926

Accounts receivable 23,553

Inventories 32,210

Prepaid expenses 5,736

Retained earnings 121,477

Notes payable to banks (due within one year) 20,000

Accounts payable 5,912

Dividends payable 1,560

Accrued liabilities (short-term) 21,532

Income taxes payable 6,438

The company also reported total assets of $353,816 thousand, total liabilities of $81,630 thousand, and a return on total assets of 18.1 percent.

Required -

a. Compute Sweet Tooth's (1) quick assets, (2) current assets, and (3) current liabilities.

b. Compute Sweet Tooth's (1) quick ratio, (2) current ratio, (3) working capital, and (4) debt ratio.

Reference no: EM132881341

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