An extract of a balance sheet is given. What are the debt-equity ratio and the quick ratios? Assets $ Liabilities $
Current Assets: Current Liabilities:
Cash 12,000 Accounts Payable 28,500
Cash at Bank 7,000 Wages Payable 7,000
Accounts Receivable 35,000 Taxes Payable 12,000
Inventory 30,500 Interest Payable 15,000
Prepayments 3,300 Total Current Liabilities 62,500
Total Current Assets 87,800

Investments: 25,000

Tangible Assets: Long-Term Liabilities
Land and Building 156,000 Bank Loan 335,000
Equipment 185,000 Notes Payable 15,000
Less: Depreciation (63,000) Total Long-Term Liabilities 350,000
Total Tangible Assets 278,000

Intangible Assets: Stockholders’ Equity
Goodwill 120,000 Common Stock 100,000
Trade Names 201,700 Retained Earnings 200,000
Total Intangible Assets 321,700 Total Stockholders’ Equity 300,000

Total Assets 712,500 Total Liability & Stockholders’ Equity 712,500
The debt-equity ratio is
(correct to 2 decimal places).
The quick ratio is
(correct to 2 decimal places).