The following balance sheet data are reported for Brownlee Catering at September 30, 2019.

Assume that on October I, 2019, only the following two transactions occurred:
October 1 Purchased additional equipment costing $11,000, giving $3,000 cash and signing an $8,000 note payable.
Declared and paid a cash dividend of $3,000.

REQUIRED:

a. Prepare Brownlee Catering's balance sheet al September 30, 2019.

b. Prepare the company's balance sheet at the close of business on October I , 2019.

c. Calculate Brownlee's current and quick ratios on September 30 and October1. (Assume that Notes Payable are noncurrent.)

d. The October1, 2019, transactions have decreased Brown lee's current and quick ratios, reflecting a decline in liquidity. Identify two transactions that would increase the company's liquidity.

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Accounts receivable. Notes payable.. Equipment.. Supplies inventory Accounts payable.. Cash...... $17,000 $24,000 10,000 12,000 34,000 Common stock. 27,500 9,000 Retained earnings ? ... ....