Use the following to answer questions 34-35: Shown below are selected data from

Question

Use the following to answer questions 34-35: Shown below are selected data from the balance sheet of HiTech, a small electronics store (dollar amounts are in thousands): $50 Cash Accounts receivable... Inventory Total assets 90 160 800 200 80 Current liabilities... Non current liabilities 34. Refer to the above data. The quick ratio is: A) 1.5 toI B) .7 to 1. C) 45 to 1. D) Some other amount. Answer: B 5. Refer to the above data. Hi-Tech's debt ratio is A) 85%. B) 2596. C)60%. D) Some other amount Answer: A the following to answer questions 36-40: n below are selected data from the financial ctat

Explanation / Answer

Total current assets less inventory=(Cash+AR)

=50+90=$140

a.Quick ratio=Total current assets less inventory/Total current liabilities

=(140/200)

=0.7 to 1(B)

b.Debt ratio=Total debt/Total assets

=(Current liabiliities+Non current liabilities)/Total assets

=(200+480)/800

=85%(A)

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