Grouper Company provides you with the following information as of December 31, 2020.
In addition, Grouper reported net income for 2020 of $16,000, income tax expense of $3,200, and interest expense of $1,300.
a. Compute the current ratio and working capital for Grouper for 2020.
b. Assume that at the end of 2020, Grouper used $3,000 cash to pay off $3,000 of accounts payable. How would the current ratio and working capital have changed?
c. Compute the debt to assets ratio and the times interest earned ratio for Grouper for 2020.
