[petiteprincess]

2010 2009
Cash 25,000 30,000
Receivables (net) 65,000 60,000
Inventories 60,000 50,000
Plant assets (net) 200,000 180,000
-------------------
350,000 $320,000


Accounts payable 50,000 60,000
Mortgage payable 100,000 100,000
Common stock, $10 par 140,000 120,000
Retained earnings 60,000 40,000
----------------------
350,000 320,000

Additional info
1 net income was 25,000
2 sales account was 375 sales returns and allowances amount to 25,000
3 cost of goods sold was 198,000
4 net cash provided by operating activities was 48,000
5 capital expenditures were 25,000 and cash dividends were 18,000


Question 1- current ratio

I thought it was 1:1 because the formula is current assets / current liabilites but this is wrong.shouldn't I be using the total of assets and liabilities? What am I doing wrong?

Question 2- cash debt coverage
I know the formula is cash provided by operations / average total liabilities. So I took 48,000/ 335,000 but this is wrong. (350K 320K)/2=335,000

Question 3 current cash debt coverage
I know the formula is cash provided by operations / average current liability so I took 48,000/87,500. 87,500 is the average of all the liabilties number on the 2010 column but this is incorrect.

I know the formulas, but I don't know what numbers to plug in to get the correct answer for these last 3 questions. I figured out all the other questions.

Thank you