Question

Listed below are year-end, 12/31/21, account balances ($ in thousands) taken from the records of XYZ Corporation.

XYZ Corporation
Adjusted Trial Balance
December 31, 2021
	Debit		Credit
Accounts receivable	700
Building	480
Equipment	375
Cash	125
Inventory	90
Land	300
Notes receivable	530
Investments	330
Prepaid rent (for the next 2 years)	50
Supplies	20
Trademark	50
Prepaid Insurance (for the next 3 years)	90
Accounts payable			620
Accumulated depreciation- Equipment			225
Accumulated depreciation- Buildings			180
Total stockholders' equity			1110
Dividends payable			50
Income tax payable			80
Allowance for Doubtful Accounts			55
Notes payable			600
Interest payable			60
Deferred revenue			160
TOTALS	3,140		3,140

Additional information and requirements:

Additional information:

1. Land includes land held a possible future plant site $125K and land for the current plant site $175K.

2. The notes receivable are due in 2023. The balance of $530 includes $30 of accrued interest. The next interest payment is due in July 2022.

3. Included in the investments are treasury bills of $70K that were purchased in November 2021 and mature in January, 2022; trading securities of $100 which are expected to be sold within the next year. The balance represents securities expected to be held longer than one year.

4. As of 12/31/21, Stockholders' equity has common stock, $1.00 par value, authorized 300K shares, and issued 150K shares at an average price of $4.50. The remaining balance in stockholders’ equity is retained earnings.

5. The note payable represents a 12% note, with interest paid annually February 28. The note matures in installments of $100 beginning 2/28/22.

6. Deferred revenue will be recognized equally over the next 24 months

1.) Prepare a classified balance sheet for XYZ Corporation at December 31, 2021. Complete the questions on the following page about the balance sheet.

1. Net accounts receivable                     ________________________
2. Total current assets                             ________________________
3. Total investments (long-term) ________________________
4. Net Buildings                                      ________________________
5. Total PP&E, net    ________________________
6. Total intangibles                                 ________________________
7. Total other assets                                ________________________
8. Total Assets                                        ________________________
9. Total Current Liabilities                     ________________________
10. Total Long-term Liabilities                ________________________
11. Common Stock                                   _______________________

2.) Calculate the following ratios :

Current ratio =
Debt to equity ratio =
Acid-test (quick) ratio =
Working capital =

Thank you so so so so so so so so so much :)

Answer 1

Balance Sheet as at 31st December, 2021
Particular		As At December 31, 2021
A	EQUITY AND LIABILITIES
1	Shareholders’ Funds
	(a) Stake holder's Equity		675.00
	(b) Retained Earning		435.00
2	Non-current Liabilities
	(a) Notes Payables		600.00
	(b)Deffered Revenue		80.00
3	Current Liabilities
	(a) Short-term Borrowings
	(b) Accounts Payables		620.00
	(c) Divident Payable		50.00
	(d) Income Tax Payable		80.00
	(e) Interest payable		60.00
	(f)Deffered Revenue		80.00
			TOTAL		2,680.00
B	ASSETS
1	Non-current Assets
	(a) Fixed Assets
	Building		480.00
	Less: Accumulated Depreciation	180.00	300.00
	Equipment		375.00
	Less: Accumulated Depreciation	225.00	150.00
	Land			300.00
	b)Investments		160.00
	(c) Notes Receivables		500.00
2	Current Assets
	(a) Inventories		90.00
	(b) Account Receivables	700.00
		Less: Allowance for Doubtful Accounts	55.00	645.00
	(c) Accrued Interest on Notes Receivables		30.00
	b)Investments		170.00
	(d) Cash and Bank Balances		125.00
	(d) Trade Mark		50.00
	(d) Supplies		20.00
	(e) Prepaid Rent		50.00
	(e) Prepaid Insurance		90.00
			TOTAL		2,680.00
	Ner Account Receivable	645.00
	Total Current Asset	1,270.00
	Total Investment (Long term)	160.00
	Net Buildings	300.00
	Total PPE , Net	150.00

Current Ratio	= Current asset/Current Liability	=1270/890
			=1.43
Debt/Equity Ratio	= Debt/Equity	=600/1110
			=0.54
Acid Test Ratio
=	Cash + Current Receivables + Short Term Investments
		Current Liabilities
=	125	+647+170
	890
=	1.058427
Working Capital	= Current asset - Current Liability =	380.00