Constructing Balance Sheets and Applying the Current and Quick Ratios The following balance sheet data are reported for Brownlee Catering at September 30, 2015. Accounts Receivable $25,500 Accounts Payable $31,000 Notes Payable 23,000 Cash 15,000 41,250 Equipment 51,000 Common Stock Supplies Inventory 13,500 Retained Earnings Assume that on October 1, 2015, 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 at September 30, 2015. b. Prepare the company's balance sheet at the close of business on October 1, 2015. BROWNLEE CATERING SERVICE BALANCE SHEETS Assets Accounts Receivable Supplies Inventory Total Assets Liabilities Notes Payable Total Liabilities Stockholders' Equity September 30, 2015 $ Current Ratio Quick Ratio $ Retained Earnings Total Stockholders Equity Total Liabilities and Stockholders' Equity $ September 30 October 1 0 0 0 0 0 $ 0 0 0 0 $ ? October 1, 2015 0 $ 0 0 0 0 0 0 $ 0 0 0 0 0 0 0 0 c. Calculate Brownlee's current and quick ratios on September 30 and October 1. (Assume that Notes Payable are noncurrent.) (Round answers to one decimal point.) 0 0 0 0
Constructing Balance Sheets and Applying the Current and Quick Ratios The following balance sheet data are reported for Brownlee Catering at September 30, 2015. Accounts Receivable $25,500 Accounts Payable $31,000 Notes Payable 23,000 Cash 15,000 41,250 Equipment 51,000 Common Stock Supplies Inventory 13,500 Retained Earnings Assume that on October 1, 2015, 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 at September 30, 2015. b. Prepare the company's balance sheet at the close of business on October 1, 2015. BROWNLEE CATERING SERVICE BALANCE SHEETS Assets Accounts Receivable Supplies Inventory Total Assets Liabilities Notes Payable Total Liabilities Stockholders' Equity September 30, 2015 $ Current Ratio Quick Ratio $ Retained Earnings Total Stockholders Equity Total Liabilities and Stockholders' Equity $ September 30 October 1 0 0 0 0 0 $ 0 0 0 0 $ ? October 1, 2015 0 $ 0 0 0 0 0 0 $ 0 0 0 0 0 0 0 0 c. Calculate Brownlee's current and quick ratios on September 30 and October 1. (Assume that Notes Payable are noncurrent.) (Round answers to one decimal point.) 0 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Constructing Balance Sheets and Applying the Current and Quick Ratios
The following balance sheet data are reported for Brownlee Catering at September 30, 2015.
Accounts Receivable $25,500 Accounts Payable $31,000
Notes Payable
23,000 Cash
15,000
41,250
Equipment
51,000 Common Stock
Supplies Inventory 13,500 Retained Earnings
Assume that on October 1, 2015, 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 at September 30, 2015.
b. Prepare the company's balance sheet at the close of business on October 1, 2015.
BROWNLEE CATERING SERVICE
BALANCE SHEETS
Assets
Accounts Receivable
Supplies Inventory
Total Assets
Liabilities
Notes Payable
Total Liabilities
Stockholders' Equity
September
30,
2015
$
Current Ratio
Quick Ratio
$
Retained Earnings
Total Stockholders Equity
Total Liabilities and Stockholders' Equity $
September 30 October 1
0
0
0
0
0 $
0
0
0
0 $
?
October 1,
2015
0 $
0
0
0
0
0
0 $
0
0
0
0
0
0
0
0
c. Calculate Brownlee's current and quick ratios on September 30 and October 1. (Assume that Notes Payable are noncurrent.) (Round
answers to one decimal point.)
0
0
0
0
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