Computing the current and debt ratios Heart of Texas Telecom has these account balances at December 31, 2012:
|
Note payable, long-term
|
$7,800
|
Accounts payable
|
$3,700
|
|
Prepaid rent
|
2,300
|
Accounts receivable
|
5,700
|
|
Salary payable
|
3,000
|
Cash
|
3,500
|
|
Service revenue
|
29,400
|
Depreciation expense
|
6,000
|
|
Supplies
|
500
|
Equipment
|
15,000
|
Requirements
1. Compute Heart of Texas Telecom's current ratio and debt ratio.
2. How much in current assets does Heart of Texas Telecom have for every dollar of current liabilities that it owes?