The following items are taken from the balance sheet of Minshew Company: Cash ................ $ 126,000 Accounts

Question:

The following items are taken from the of Minshew Company:
Cash ................ $ 126,000
Accounts Receivable (net) ........ 378,000
Merchandise Inventory .......... 123,000
Supplies ................ 500
Prepaid Expenses ........... 3,350
Accounts Payable ........... 175,700
Notes Payable (current) ........... 18,500
Salaries Payable ............ 3,800
Compute the following:
a. Working capital
b. Current ratio
c. Quick ratio

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...