Refer to Exercise 3-26A. The unadjusted trial balance and income statement amounts from the December 31 adjusted

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Refer to Exercise 3-26A. The unadjusted trial balance and income statement amounts from the December 31 adjusted trial balance of Warfield Production Company follow.


Refer to Exercise 3-26A. The unadjusted trial balance and income


Requirements
1. Use the data in the partial worksheet to prepare Warfield Production Company’s classified balance sheet at December 31 of the current year. Use the report format. First you must compute the adjusted balance for several of the balance-sheet accounts.
2. Compute Warfield Production Company’s net working capital, current ratio, and debt ratio at December 31. A year ago, net working capital was $6,400, the current ratio was 1.67, and the debt ratio was 0.40. Indicate whether the company’s ability to pay its debts—both current and total—improved or deteriorated during the currentyear.

Balance Sheet
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...
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Financial Accounting

ISBN: 978-0133427530

10th edition

Authors: Walter Harrison, Charles Horngren, William Thomas

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