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The image provided includes a balance sheet for Jenkins Lumber Supply and instructions to calculate three financial ratios: the current ratio, the acid-test ratio, and the debt-to-equity ratio.

### Extracted Information from the Balance Sheet:
#### Assets:
- **Current Assets:**
  - Cash: $31,000
  - Accounts Receivable (Net): $46,000
  - Merchandise Inventory: $75,500
  - Prepaid Expenses: $7,700
  - **Total Current Assets:** $160,200
- **Plant and Equipment (Net):** $271,000
- **Total Fixed Assets:** $271,000
- **Total Assets:** $431,200

#### Liabilities:
- **Current Liabilities:**
  - Accounts Payable: $34,000
  - Notes Payable (due in 6 months): $8,200
  - Accrued Liabilities: $7,500
  - **Total Current Liabilities:** $49,700
- **Long-term Liabilities:**
  - Notes Payable (due in 5 years): $43,000
- **Total Liabilities:** $92,700

#### Equity:
- **Common Stock:** $290,000
- **Retained Earnings:** $48,500
- **Total Stockholders' Equity:** $338,500
- **Total Liabilities and Stockholders' Equity:** $431,200

### Calculations:
1. **Current Ratio:**
   \[
   \text{Current Ratio} = \frac{\text{Total Current Assets}}{\text{Total Current Liabilities}} = \frac{160,200}{49,700} \approx 3.22
   \]

2. **Acid-Test Ratio:**
   \[
   \text{Acid-Test Ratio} = \frac{\text{(Total Current Assets - Merchandise Inventory)}}{\text{Total Current Liabilities}} = \frac{(160,200 - 75,500)}{49,700} \approx 1.71
   \]

3. **Debt-to-Equity Ratio:**
   \[
   \text{Debt-to-Equity Ratio} = \frac{\text{Total Liabilities}}{\text{Total Stockholders' Equity}} = \frac{92,700}{338,500} \approx 0.27 \text{ or } 27\%
   \]

### Final Results:
- **Current Ratio:** 3.22
- **Acid-Test Ratio:** 1.71
- **Debt-to-Equity Ratio:** 27%

Would you like a detailed explanation of any of these ratios or have any further questions?

### Follow-up Questions:
1. How does the current ratio reflect the company's liquidity?
2. Why is the acid-test ratio often considered more stringent than the current ratio?
3. What does a debt-to-equity ratio of 27% indicate about Jenkins Lumber Supply’s financial structure?
4. What might be the implications if the debt-to-equity ratio were significantly higher?
5. How could Jenkins Lumber Supply improve its acid-test ratio?

### Tip:
Always compare the calculated financial ratios to industry averages to better assess the company's financial health.

Calculate the following three financial ratios for Jenkins Lumber Supply: 1. Current ratio 2. Acid-test ratio 3. Debt-to-equity ratio.

Learn how to calculate essential financial ratios for Jenkins Lumber Supply, including the current ratio, acid-test ratio, and debt-to-equity ratio. Detailed step-by-step solutions are provided to help you understand key financial concepts.

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