Ans 1

Current ratio = 118000/59000 = 2

Quick Ratio = 115000/59000 = 1.9

Debt to equity ratio = TD / TA = 36%

Ans 2

Current assets = cash + accounts receivable + Inventory + Prepaid insurance = 126000

Current liablilities = 30000+ 25000+ 5000 = 60000

Working capital = current assets - current liabilities =$126,000- $60,000 = $66,000.

The current ratio = [current assets / current liabilities]: 1 = [$126,000 / $60,000]: 1 = 2.1: 1.

The quick ratio = [(Cash + Accounts Receivable) / current liabilities]: 1 = [($10,000 + $30,000) / $60,000]:
1 = 0.66667:1

Solvency Ratios :

Total assets = 10000+30000+80000+6000+126000+200000 = 326000

Debt to Equity Ratio = Long term Debt / Shareholders equity = 70000 / 196000 = 0.36

Proprietary Ratio = Shareholders Equity / Total assets = 196000 / 326000 = .61 = 61.12%

Total Assets to Debt Ratio = Total assets / Long term Debt = 326000 / 196000 = 1.66