ABC Ltd. had the following account balances as of December 31, 2022: Cash $15,000 Accounts receivable $20,000
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Question:
ABC Ltd. had the following account balances as of December 31, 2022:
Cash $15,000 Accounts receivable $20,000 Inventory $25,000 Land $50,000 Equipment $70,000 Accumulated depreciation - equipment $20,000 Accounts payable $15,000 Long-term note payable $40,000 Common stock $25,000 Retained earnings $35,000
During 2023, the following transactions occurred:
- Sold merchandise for $80,000, of which $40,000 was collected in cash and the rest on account.
- Paid $20,000 for operating expenses.
- Paid $30,000 for merchandise purchases.
- Collected $35,000 from accounts receivable.
- Sold equipment for $10,000. The equipment originally cost $40,000 and had accumulated depreciation of $20,000.
- Paid $10,000 in dividends.
- Borrowed $15,000 by signing a long-term note payable.
- Paid $8,000 of the long-term note payable.
Calculate the following for ABC Ltd. as of December 31, 2023:
- Current ratio
- Quick ratio
- Total asset turnover
- Debt to equity ratio
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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