Statement of financial position items for Elridge Inc. follow for the current year, 2020: Accumulated depreciation-...

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Statement of financial position items for Elridge Inc. follow for the current year, 2020: Accumulated depreciation- equipment Inventory Rent Payable Income tax payable Rent payable (long-term) Common Shares (20,000 shares issued) Preferred shares (15,000 shares issued) Prepaid expenses Equipment Goodwill $125,000 $292,000 Payroll taxes payable Bonds payable due 2021 Discount on bonds payable 177,591 239,800 45,000 98,362 285,000 15,000 Cash 360,000 480,000 Land 480,000 200,000 Notes receivable 445,700 150,000 87,920 1,470,000 Notes payable 265,000 Accounts payable 490,000 Retained earnings ? FV-NI investments 121,000 Accumulated depreciation- building Income tax receivable 97,630 270,200 Notes payable (due in five years) 1,600,000 Buildings 1,640,000 1- Prepare a classified statement of financial position in good form. (10 marks) The numbers of authorized shares are as follows: unlimited common and 20,000 preferred. Assume that income tax accounts, notes receivable, and notes payable are short-term, unless stated otherwise, and that the fair value - net income investments are stated at fair value. 2- Calculate the current ratio. What does it measure? (3 marks) Statement of financial position items for Elridge Inc. follow for the current year, 2020: Accumulated depreciation- equipment Inventory Rent Payable Income tax payable Rent payable (long-term) Common Shares (20,000 shares issued) Preferred shares (15,000 shares issued) Prepaid expenses Equipment Goodwill $125,000 $292,000 Payroll taxes payable Bonds payable due 2021 Discount on bonds payable 177,591 239,800 45,000 98,362 285,000 15,000 Cash 360,000 480,000 Land 480,000 200,000 Notes receivable 445,700 150,000 87,920 1,470,000 Notes payable 265,000 Accounts payable 490,000 Retained earnings ? FV-NI investments 121,000 Accumulated depreciation- building Income tax receivable 97,630 270,200 Notes payable (due in five years) 1,600,000 Buildings 1,640,000 1- Prepare a classified statement of financial position in good form. (10 marks) The numbers of authorized shares are as follows: unlimited common and 20,000 preferred. Assume that income tax accounts, notes receivable, and notes payable are short-term, unless stated otherwise, and that the fair value - net income investments are stated at fair value. 2- Calculate the current ratio. What does it measure? (3 marks)

Answer rating: 100% (QA)

Elridge Inc Balance sheet December 31 2020 Assets Current Assets Cash 360000 FVNI Investments 121000 ... View the full answer