A recent balance sheet of Sweet Tooth, Inc., included the following items, among others. (Dollar amounts are stated in thousands.)
| Cash | $ | 50,230 | |
| Marketable securities (short-term) | 55,926 | ||
| Accounts receivable | 23,553 | ||
| Inventories | 32,210 | ||
| Prepaid expenses | 5,736 | ||
| Retained earnings | 121,477 | ||
| Notes payable to banks (due within one year) | 20,000 | ||
| Accounts payable | 5,912 | ||
| Dividends payable | 1,560 | ||
| Accrued liabilities (short-term) | 21,532 | ||
| Income taxes payable | 6,438 | ||
The company also reported total assets of $353,816 thousand, total liabilities of $81,630 thousand, and a return on total assets of 18.1 percent.
Required:
a. Compute Sweet Tooth’s (1) quick assets, (2) current assets, and (3) current liabilities.
b. Compute Sweet Tooth’s (1) quick ratio, (2) current ratio, (3) working capital, and (4) debt ratio. (Round ratios to 1 decimal place.)
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