GolfLink is a golf course company with clubs in ten provinces. Listed here is part of the
Question:
GolfLink is a golf course company with clubs in ten provinces. Listed here is part of the comparative balance sheet at December 31, 2021, showing the following assets and liabilities, in alphabetical order:
Required
Part 1
a. Calculate total current assets at December 31, 2020, and December 31, 2021.
b. Calculate total current liabilities at December 31, 2020, and December 31, 2021.
Part 2
c. Calculate the current ratio for December 31, 2020 and December 31, 2021 (round to two decimal places).
d. Explain the meaning of GolfLink?s current ratio results calculated in part (c). Also indicate whether the change in the ratio was favourable or unfavourable.
Balance SheetBalance 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:
Fundamental Accounting Principles Volume I
ISBN: 978-1260305821
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann