Current Liabilities and Ratios
Listed below are several accounts that appeared on Queen’s 2007 balance sheet.
Accounts Payable
$ 78,900
Equipment
$ 930,000
Marketable Securities
85,800
Taxes Payable
24,200
Accounts Receivable
318,000
Retained Earnings
359,100
Notes Payable, 12%, due in 60 days
37,000
Inventory
191,400
Capital Stock
1,650,000
Allowance for Doubtful Accounts
34,100
Salaries Payable
20,900
Land 580,000
Cash 99,000
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1. What is the amount of total current liabilities that would appear on Queen's 2007 balance sheet? $
2. Compute Queen’s working capital.
3. Compute Queen’s current ratio. Round to one decimal place.
: 1
I need all three answers! Thanks!
2007-11-09 05:52:58 · 4 answers · asked by mr.paulio 2 in Education & Reference ➔ Homework Help
1. I'll go the extra mile for you. Here's the balance sheet:
Non-current Assets
Land $580,000
Equipment $930,000
Sub-total $1,510,000
Current Assets
Inventory $191,400
Accounts Receivable (net of allowance of $34,100) $283,900
Marketable Securities $85,800
Cash $99,000
Sub-total $660,100
Total Assets $2,170,100
Current Liabilities
Accounts Payable $78,900
Notes Payable, 12%, due in 60 days $37,000
Salaries Payable $20,900
Taxes Payable $24,200
Total Liabilities $161,000
Equity
Capital Stock $1,650,000
Retained Earnings $359,100
Total Equity $2,009,100
Total Liabilities & Equity $2,170,100
2. Compute Queen’s working capital.
Working capital = Current Assets - Current Liabilities = $660,100 - $161,000 = $499,100
3. Compute Queen’s current ratio. Round to one decimal place.
Current ratio = Current Assets/Current Liab. = 660,100/161,000 = 4.1:1
Your current assets are more than 4 times your current liabilities
2007-11-13 23:55:09 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋
Liabilities - Anything "payable" and I think the Allowance
Current Ratio - Current Assets/Current Liabilities
Working capital - beats me
2007-11-09 05:59:06 · answer #2 · answered by IAskUAnswer 6 · 0⤊ 0⤋
#1 add up all of the liabilities
#2 add up all the cash less pay outs
#3 you can do it.
2007-11-09 05:56:34 · answer #3 · answered by holeeycow 5 · 0⤊ 0⤋
Add them up. Its easy. Youprobably have to journalize it too.
2007-11-09 06:01:16 · answer #4 · answered by soil03 2 · 0⤊ 0⤋