Selected balance sheet accounts for Tibbetts Company on September 30, 2010, are as follows: Cash . .
Question:
Selected balance sheet accounts for Tibbetts Company on September 30, 2010, are as follows:
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 32,000
Marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . 58,000
Accounts receivable, net . . . . . . . . . . . . . . . . . . . . . . . 86,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . $280,000
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 98,000
Other accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . 22,000
Short-term debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . $160,000
Required:
a. Calculate the working capital, current ratio, and acid-test ratio for Tibbetts Company as of September 30, 2010.
b. Summarized here are the transactions/events that took place during the fiscal year ended September 30, 2011. Indicate the effect of each item on Tibbetts Company's working capital, current ratio, and acid-test ratio. Use + for increase, − for decrease, and (NE) for no effect.
Balance SheetBalance 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...
Step by Step Answer:
Accounting What the Numbers Mean
ISBN: 978-0073527062
9th Edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,