Listed below are assets and liabilities of Reliable Corporation for the years 2021 and 2022. Each is

Question:

Listed below are assets and liabilities of Reliable Corporation for the years 2021 and 2022. Each is listed in alphabetical order.

Assets 2022 2021 Liabilities 2022 Accounts receivable $ 1,700 $ 2,400 $ 3,900 Accounts payable Cash 1,200 Bonds 31,000 006 payable Equipment (net) Notes payable (current) 44,000 50,000 2,200 Inventory 3,700 4,200 Notes 5,000 payable (long- term) Land 22,000 22,000 Total $42,100 liabilities Supplies 700 400 Total $72,700 $80,500 assets

Reliable reported net income of $48,000 for 2022 and $42,000 for 2021.

a. Compute total current assets and total current liabilities for each year.

b. Compute working capital and the current ratio for each year. (Round to two decimal places.)

c. Compute the debt to assets ratio for each year. (Round to two decimal places.)

d. Comment on the change in the company’s liquidity and solvency.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Survey Of Accounting

ISBN: 9781119594536

2nd Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt

Question Posted: