Use the Balance Sheets of Glover Shown Below to Calculate $\quad$

question 114

Essay

Use the balance sheets of Glover shown below to calculate the following ratios for 2018 (round to the hundredths):
(a) Current ratio.
(b) Acid-test ratio.
(c) Debt ratio.
(d) Equity ratio.
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Glover Company }$
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Balance Sheets }$
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { December 31,2018 and 2017 }$
$$\begin{array} { | l | l | l | } \hline & 2018 & 2017 \\\hline \text { Assets: } & & \\\hline \text { Cash } & \$ 43,000 & \$ 22,000 \\\hline \text { Accounts receivable } & 38,000 & 42,000 \\\hline \text { Merchandise inventory } & 61,000 & 52,000 \\\hline \text { Prepaid insurance } & 6,000 & 9,000 \\\hline \text { Long-term investments } & 49,000 & 20,000 \\\hline \text { Plant assets (net) } & 218,000 & 218,000 \\\hline \text { Total assets } & \$ 415,000 & \$ 363,000 \\\hline & & \\\hline \text { Liabilities and Equity: } & & \\\hline \text { Current liabilities } & \$ 62,000 & \$ 75,000 \\\hline \text { Long-term liabilities } & 45,000 & 36,000 \\\hline \text { Rommon stock } & 150,000 & 150,000 \\\hline \text { Totained earnings } & 158,000 & 102,000 \\\hline\end{array}$$

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Definitions:

Nativists

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Civil Unrest

Acts of public disturbance and disorder caused by groups within a community, often in response to perceived grievances or injustice.

Undercutting Laborers

The practice of offering to work for lower wages or under worse conditions than others, leading to a decrease in labor standards and wages across a sector.

Industrial System

An economic and social system based on the large-scale production and distribution of goods, characterized by the use of machinery and often associated with the industrial revolution.