Measures of Solvency and Credit Risk

question 129

Essay

Measures of solvency and credit risk
Shown below are selected items appearing in a recent balance sheet of Grant Products. (Dollar amounts are in thousands.)

(a) Compute the following:
(1) Total quick assets $____________
(2) Total current assets $____________
(3) Total current liabilities $____________
(4) Quick ratio ______ to 1
(5) Current ratio ______ to 1
(b) Research indicates an industry average quick ratio is 1.3 to 1, and a current ratio of 2.3 to 1. Based upon this information, does Grant Products appear more or less solvent than the average company in its industry? Explain briefly.

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Definitions:

Genetic Equilibrium

The condition of a population that is not undergoing evolutionary change (i.e., in which allele and genotype frequencies do not change from one generation to the next). See Hardy–Weinberg Principle.

Allele Frequencies

The proportion of various alleles of a gene in a population, which can change over time due to evolutionary pressures, genetic drift, mutation, and gene flow.

MN Blood Type

A blood group system classifying human blood based on the presence or absence of the M and N antigens on the surface of red blood cells.

Genotype Frequency

The proportion of a particular genotype in the population. Compare with allele frequency and phenotype frequency.