Cathy Sand discovered a piece of wet and partially burned balance sheet after her office was destroyed by fire. She could recall a current ratio of 1.75 and a debt to assets ratio of 45 percent.

Required
Complete the balance sheet by supplying the missing amounts.

Transcribed Image Text:

Assets Current assets $ 37,500 (A) Cash Accounts receivable Inventory Prepaid expenses 63,000 13,500 Total current assets (B) Long-term assets Building Less: Accumulated depreciation Total long-term assets (C) (45,000) 270,000 Total assets (D) Liabilities and Stockholders' Equity Liabilities Current liabilities $ 63,000 (E) 27,000 Accounts payable Notes payable Income tax payable Total current liabilities 120,000 Long-term liabilities Bonds payable Mortgage payable Total liabilities 67,500 (F) (G) Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 135,000 (H) (I) (J) %24