Question

Problem​ #2 Point​ Value: 15 Show all Work to Receive Credit

Using the Below​ Information:

Cash                                                                    ​$18,000	​Short-Term Notes​ Payable $12,000
Accounts Receivable ​ $60,000	​Long-Term Bonds​ Payable $15,000
Other Current Assets ​ $5,000	Common Stock​ ​ $43,000
​Inventories ​ $122,000	​Sales ​ $300,000
Gross fixed​ assets ​ $40,000	Cost of Goods​ Sold ​ $150,000
Accumulated​ Depreciation $30,000	Depreciation​ Expense $3,000
Accounts payable ​ $35,000	Retained​ Earnings ​ $100,000
​Long-term notes​ payable $10,000

​A: Prepare a Balance Sheet    Make sure to identify current​ assets, net fixed​ assets, total​ assets, current​ liabilities, long-term​ debt, total​ equity, and total liabilities and equity.

​B: Current Ratio

         

Calculate the Current Ratio
What does the ratio tell you about the liquidity of this​ company?

                                               

Answer 1

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