Assume the following: Cash, $100,000; Accounts Receivable, $50,000; Accounts Payable, $50,000; Supplies, $40,000; Equipment, $100,000; Land,...

Assume the following: Cash, $100,000; Accounts Receivable, $50,000; Accounts Payable, $50,000; Supplies, $40,000; Equipment, $100,000; Land, $500,000; Bonds Payable, $1,000,000; Mortgage Payable, $400,000; Inventory, $100,000. Compute both the current and quick ratios. What conclusions can you draw from this data ?

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

You have $60,000 in cash, $40,000 in accounts receivable, $100,000 in inventory, $65,000 in accounts payable,...

You have $60,000 in cash, $40,000 in accounts receivable, $100,000 in inventory, $65,000 in accounts payable, $25,000 in accrued expenses on 12/31/2017. What was your net working capital balance on this date?

Accounts Payable Accounts Receivable Building Cash Equipment Fees Earned Land Owner—Drawing Owner—Equity Rent Revenue Supplies Utilities...

Accounts Payable Accounts Receivable Building Cash Equipment Fees Earned Land Owner—Drawing Owner—Equity Rent Revenue Supplies Utilities Expense Wages Expense If the total of each ACCOUNT is $5,000 what will be the NET INCOME ?

Journalize the business transactions using these accounts: Cash; Accounts Receivable; Supplies; Accounts Payable; Clay Potter, Capital;...

Journalize the business transactions using these accounts: Cash; Accounts Receivable; Supplies; Accounts Payable; Clay Potter, Capital; Clay Potter, Drawing; Professional Fees; and Operating Expenses. (a) Journalize following transactions of Potter Pool Services for June, identifying each entry by number: Put them into T-accounts for easier creation of a trial balance (1) Potter invested $12,500 cash in the business. (2) Purchased supplies on account, $6,250. (3) Paid operating expenses, $5,500. (4) Billed clients for fees, $7,440. (5) Received cash from...

Concrete Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment;...

Concrete Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Jason Payne, Capital; Jason Payne, Drawing; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense. Transactions Oct. 1 Paid rent for the month, $2,200. 3 Paid advertising expense, $550. 5 Paid cash for supplies, $1,200. 6 Purchased office equipment on account, $9,300. 10 Received cash from customers on account, $16,950. 15 Paid creditors on account, $3,000. 27 Paid cash for miscellaneous...

Concrete Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment;...

Concrete Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Jason Payne, Capital; Jason Payne, Drawing; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense. Transactions Oct. 1 Paid rent for the month, $2,100. 3 Paid advertising expense, $650. 5 Paid cash for supplies, $1,350. 6 Purchased office equipment on account, $9,300. 10 Received cash from customers on account, $15,600. 15 Paid creditors on account, $3,360. 27 Paid cash for miscellaneous...

Zenith Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment;...

Zenith Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Retained Earnings; Dividends; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense. March 1. Paid rent for the month, $3,700. 3. Paid advertising expense, $2,360. 5. Paid cash for supplies, $1,010. 6. Purchased office equipment on account, $15,500. 10. Received cash from customers on account, $5,060. 15. Paid creditor on account, $1,480. 27. Paid cash for miscellaneous expenses, $640....

Concrete Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment;...

Concrete Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Jason Payne, Capital; Jason Payne, Drawing; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense. Transactions Oct. 1 Paid rent for the month, $2,100. 3 Paid advertising expense, $650. 5 Paid cash for supplies, $1,350. 6 Purchased office equipment on account, $9,300. 10 Received cash from customers on account, $15,600. 15 Paid creditors on account, $3,360. 27 Paid cash for miscellaneous...

enith Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment;...

enith Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Retained Earnings; Dividends; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense. Transactions Mar. 1 Paid rent for the month, $4,000. 3 Paid advertising expense, $1,350. 5 Paid cash for supplies, $1,800. 6 Purchased office equipment on account, $11,500. 10 Received cash from customers on account, $8,600. 15 Paid creditor on account, $3,180. 27 Paid cash for miscellaneous expenses,...

Set up T accounts for Cash; Accounts Receivable; Supplies; Accounts Payable; Common Stock; Dividends; Professional Fees;...

Set up T accounts for Cash; Accounts Receivable; Supplies; Accounts Payable; Common Stock; Dividends; Professional Fees; and Operating Expenses. (a) In the T accounts, record the following transactions of Potter Pool Services for June, identifying each entry by number: (1) Stockholders invested $12,500 cash in the business by purchasing common stock. (2) Purchased supplies on account, $6,250. (3) Paid operating expenses, $5,500. (4) Billed clients for fees, $7,440. (5) Received cash from cash clients, $4,700. (6) Paid creditors on account,...

Accounts payable $ 40,000 Accounts receivable 33,000 Accumulated depreciation—buildings 25,000 Ac

Accounts payable $ 40,000 Accounts receivable 33,000 Accumulated depreciation—buildings 25,000 Accumulated depreciation—equipment 20,000 Advertising Expense 4,500 Bonds payable, due December 31, 2024 260,000 Buildings 180,000 Capital stock, $1 par value 220,000 Cash 92,120 Commission Expense 8,400 Cost of Goods Sold 31,480 Depreciation Office 2,970 Equipment 75,500 Income Tax Expense 7,150 Income taxes payable 3,860 Insurance Expense Sales Auto 3,200 Interest Expense 1,550 Interest payable...

Subjects