Reference no: EM132581332

                                                                Year Two                                Year One

Current Assets

Cash and cash equivalents                $20,000                            $20,000

Accounts Receivable, net                  40,000                                 36,000

Inventory                                         44,000                               39,600

Other Current Assets                            4,000                               5,000

Total Current Assets                            108,000                          100,600

Plant & Equipment, net                          120,000                        108,000

Total Assets                                        228,000                     208,600

Current Liabilities                                      54,000                        50,000

Noncurrent Liabilities                               108,000                       100,000

Total Liabilities                                        162,000                    150,000

Total Stockholders' Equity                         66,000                        58,600

Total liabilities and Stockholders' Equity         $228,000                 $208,000

Problem 1: What is working capital for Year One?

Problem 2: What is the current ratio for Year Two?

Problem 3: What is the acid test ratio for Year One?