College Spirit sells sportswear with logos of major universities. At the end of 2019, the followingbalance sheet account balances were available.Accounts payable $104,700Accounts receivable 6,700Accumulated depreciation 23,700Bonds payable 180,000Cash 13,300Common stock 300,000Furniture 88,000Income taxes payable $ 11,400Inventory 481,400Long-term investment 110,900Note payable, short-term 50,000Prepaid rent (current) 54,000Retained earnings, 12/31/2019 84,500Required:1. Prepare a classified balance sheet for College Spirit at December 31, 2019.2. Compute College Spirit’s working capital and current ratio at December 31, 2019.3. CONCEPTUAL CONNECTION Comment on College Spirit’s liquidity as of December 31,2019.
College Spirit sells sportswear with logos of major universities. At the end of 2019, the followingbalance sheet account balances were available.Accounts payable $104,700Accounts receivable 6,700Accumulated depreciation 23,700Bonds payable 180,000Cash 13,300Common stock 300,000Furniture 88,000Income taxes payable $ 11,400Inventory 481,400Long-term investment 110,900Note payable, short-term 50,000Prepaid rent (current) 54,000Retained earnings, 12/31/2019 84,500Required:1. Prepare a classified balance sheet for College Spirit at December 31, 2019.2. Compute College Spirit’s working capital and current ratio at December 31, 2019.3. CONCEPTUAL CONNECTION Comment on College Spirit’s liquidity as of December 31,2019.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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| College Spirit sells sportswear with logos of major universities. At the end of 2019, the following Accounts payable $104,700 Accounts receivable 6,700 Accumulated Bonds payable 180,000 Cash 13,300 Common stock 300,000 Furniture 88,000 Income taxes payable $ 11,400 Inventory 481,400 Long-term investment 110,900 Note payable, short-term 50,000 Prepaid rent (current) 54,000 Retained earnings, 12/31/2019 84,500 Required: 1. Prepare a classified balance sheet for College Spirit at December 31, 2019. 2. Compute College Spirit’s 3. CONCEPTUAL CONNECTION Comment on College Spirit’s liquidity as of December 31, 2019. |
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