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2. The current asset section of Seifert & Seifert, CPA’s balance sheet consists of cash, accounts receivable, investments, and prepaid expenses. The 2011 balance sheet reported the following: cash, $110,000; investments, $22,000; prepaid expenses, $18,000; noncurrent assets, $422,000; and shareholders’ equity, $350,000. The current ratio at the end of the year was 1.6 and the debt to equity ratio was .8. Required: Determine the following 2011 amounts and ratios: a. Current liabilities. b. Long-term liabilities. c. Accounts receivable. d. The acid-test ratio.
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