Preparing Balance Sheets, Computing Income, and Applying the Current and Quick Ratios Balance sheet information for...

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Preparing Balance Sheets, Computing Income, and Applying the Current and Quick Ratios Balance sheet information for Lang Services at the end of Year 2 (the most recent year) and Year 1 is: December 31, Year 2 December 31, Year 1 Accounts receivable. Notes payable. Cash. Equipment Supplies Accounts payable Stockholders' equity $68,400 $52,500 5,400 4,800 30,000 24,000 96,000 81,000 14,100 12,600 75,000 75,000 ? ? a. Prepare Lang Services' balance sheet for December 31 of each year. b. C. d. Lang Services raised $15,000 cash through issuing additional common stock early in Year 2, and it declared and paid a $51,000 cash dividend in December Year 2. Compute its net income or loss for Year 2. Calculate the current ratio and quick ratio for Year 2. Assume the industry average is 1.5 for the current ratio and 1.0 for the quick ratio. Comment on Lang's current and quick ratios relative to the industry. Preparing Balance Sheets, Computing Income, and Applying the Current and Quick Ratios Balance sheet information for Lang Services at the end of Year 2 (the most recent year) and Year 1 is: December 31, Year 2 December 31, Year 1 Accounts receivable. Notes payable. Cash. Equipment Supplies Accounts payable Stockholders' equity $68,400 $52,500 5,400 4,800 30,000 24,000 96,000 81,000 14,100 12,600 75,000 75,000 ? ? a. Prepare Lang Services' balance sheet for December 31 of each year. b. C. d. Lang Services raised $15,000 cash through issuing additional common stock early in Year 2, and it declared and paid a $51,000 cash dividend in December Year 2. Compute its net income or loss for Year 2. Calculate the current ratio and quick ratio for Year 2. Assume the industry average is 1.5 for the current ratio and 1.0 for the quick ratio. Comment on Lang's current and quick ratios relative to the industry.

Answer rating: 100% (QA)

Answer a Lang Services balance sheet for December 31 of each year is as follows December 31 Year 2 A... View the full answer