accounting question help

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ntebj13

Business Finance

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1 question

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Current assets Cash $26,500 Accounts receivable 32,000 Prepaid insurance 6,900 $ 65,400 Equipment (net) 201,700 Total assets $267,100 Current liabilities Accounts payable $ 21,500 Salaries and wages payable 12,000 $ 33,500 Long-term liabilities Notes payable 81,900 Total liabilities 115,400 Stockholders’ equity Common stock 100,000 Retained earnings 51,700 Total liabilities and stockholders’ equity 151,700 $267,100 Calculate the current ratio and working capital based on the preliminary balance sheet. (Round Current Ratio to 1 decimal place, e.g. 0.7 : 1.) Current ratio Working capital :1
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Explanation & Answer

Here is the answer. Thanks.

Current assets
Cash

$26,500

Accounts receivable

32,000

Prepaid insurance

6,900

$ 65,400

Equipment (net)

201,700

Total assets

$267,100

Current liabilities
Accounts payable

$ 21,500

Salaries and wages ...


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