For Evergreen Environmental Engineering (EEE), determine the working capital, current ratio, and acid-test ratio. Evaluate the company’s economic situation with respect to its ability to pay off debts.
EEE Balance Sheet Date ($1000s)
Cash $110,000
Securities 40,000
Accounts Receivable 160,000
Inventories 250,000
Prepaid Expenses 3,000
Accounts Payable 351,000
Accrued Expenses 89,000