The Following Data Were Reported by Universe Company at Year-End

question 4

Essay

The following data were reported by Universe Company at year-end:
$$\begin{array} { l r } \text { Total assets } & \$ 525,000 \\\text { Quick assets } & 105,000 \\\text { Noncurrent assets } & 375,000 \\\text { Current liabilities } & 75,000 \\\text { Long-term liabilities } & 75,000 \\\text { Common stock (par } \$ 10 ) & 170,000 \\\text { Total owners' equity } & 375,000\end{array}$$ Calculate each of the following ratios:
A.Debt-to-equity
B.Current ratio
C.Quick ratio
D.Which,if any,of the above are liquidity ratios?
E.Which,if any,of the above are profitability ratios?

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Definitions:

Market Value

The present cost at which a service or asset is available for purchase or sale.

Joint Cost Allocation

The process of distributing shared costs among different products, services, or business units.

Split-Off

A process in the production or manufacturing where a certain point separates products or components into distinct paths.

Sequential Method

A method of executing tasks or operations one after the other in a specified sequence.