Question

Troy Craft discovered a piece of wet and partially burned balance sheet after his office was destroyed by fire. He could recall a current ratio of 1.75 and a debt to assets ratio of 45 percent.
Assets
Current assets
Cash .............. $ 75,000
Accounts receivable ........ (A)
Inventory ............ 126,000
Prepaid expenses ......... 27,000
Total current assets ........ (B)
Long-term assets
Building ....................... (C)
Less: Accumulated depreciation .. (90,000)
Total long-term assets ...... 540,000
Total assets ............ $ (D)
Liabilities and Stockholders’ Equity
Liabilities
Current liabilities
Accounts payable ......... $126,000
Notes payable ............. (E)
Income tax payable ........ 54,000
Total current liabilities ..... 240,000
Long-term liabilities
Bonds payable .......... 135,000
Mortgage payable ......... (F)
Total liabilities ......... (G)
Stockholders’ equity
Common stock .......... 270,000
Retained earnings ......... (H)
Total stockholders’ equity ..... (I)
Total liabilities and stockholders’ equity... $ (J)

Required
Complete the balance sheet by supplying the missing amounts.



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  • CreatedFebruary 07, 2014
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