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    Spartan Sportswear's Current Assets

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    Spartan Sportswear's current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data was abstracted from a recent financial statement:

    Inventories $180,000
    Total assets $720,000
    Current ratio 2.75
    Acid-test ratio 1.5
    Debt to equity ratio 1.4

    Compute the following for Spartan:
    a. Current Assets
    b. Shareholders' Equity
    c. Long-Term Assets
    d. Long-Term Liabilities

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    https://brainmass.com/business/financial-ratios/ratios-spartan-sportswear-170124

    Solution Preview

    a. Current Assets
    Inventories = (Current ratio-Acid test ratio)
    180000 = (2.75-1.5)
    180000 = 1.25 times of Current Liabilities
    Current Liabilities = 180000/1.25
    $144000

    Current Assets = ...

    Solution Summary

    This solution calculates the current assets, shareholders' equity, long-term assets, and liabilities for Spartan Sportswear.

    $2.19

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