Refer back to Problem 3-71A. Requirements 1. Use the Mountain Lodge data in Problem 3-71A to prepare
Question:
Requirements
1. Use the Mountain Lodge data in Problem 3-71A to prepare the companys classified balance sheet at March 31, 2012. Show captions for total assets, total liabilities, and total liabilities and stockholders equity.
2. Compute Mountain Lodges net working capital, current ratio, and debt ratio at March 31, 2012, rounding to two decimal places. At March 31, 2011, net working capital was $11,800, the current ratio was 1.20, and the debt ratio was 0.25. Did Mountain Lodges ability to pay both current and total debts improve or deteriorate during fiscal 2012? Evaluate Mountain Lodges debt position as strong or weak and give yourreason.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom