Question: Several accounts that appeared on Kruse's 2012 balance sheet are as follows: Accounts Payable........................$ 55,000 Equipment................................$950,000 Marketable Securities......................40,000 Taxes Payable...............................15,000 Accounts Receivable.....................180,000 Retained Earnings........................250,000 Notes
Several accounts that appeared on Kruse's 2012 balance sheet are as follows:
Accounts Payable........................$ 55,000
Equipment................................$950,000
Marketable Securities......................40,000
Taxes Payable...............................15,000
Accounts Receivable.....................180,000
Retained Earnings........................250,000
Notes Payable, 12%, due in 60 days.....20,000
Inventory....................................85,000
Capital Stock............................1,150,000
Allowance for Doubtful Accounts.......20,000
Salaries Payable.............................10,000
Land.........................................600,000
Cash..........................................15,000
Required
1. Prepare the Current Liabilities section of Kruse's 2012 balance sheet.
2. Compute Kruse's working capital.
3. Compute Kruse's current ratio. What does this ratio indicate about Kruse's condition?
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