College Spirit sells sportswear with logos of major universities. At the end of 2022, the following statement of financial position account balances were available. Accounts payable $104,700 Income taxes payable $11,400 Accounts receivable 6,700 Inventory 481,400 Accumulated depreciation 23,700 Long-term investment 110,900 Bonds payable 180,000 Note payable, short-term 50,000 Cash 13,300 Prepaid rent (current) 54,000 Common shares 300,000 Retained earnings, 12/31/2022 84,500 Furniture 88,000 Required: 1. Prepare a classified statement of financial position for College Spirit at December 31, 2022. 2. Compute College Spirit's working capital and current ratio at December 31, 2022. Round current ratio answer to two decimal places.
College Spirit sells sportswear with logos of major universities. At the end of 2022, the following statement of financial position account balances were available. Accounts payable $104,700 Income taxes payable $11,400 Accounts receivable 6,700 Inventory 481,400 Accumulated depreciation 23,700 Long-term investment 110,900 Bonds payable 180,000 Note payable, short-term 50,000 Cash 13,300 Prepaid rent (current) 54,000 Common shares 300,000 Retained earnings, 12/31/2022 84,500 Furniture 88,000 Required: 1. Prepare a classified statement of financial position for College Spirit at December 31, 2022. 2. Compute College Spirit's working capital and current ratio at December 31, 2022. Round current ratio answer to two decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Classified Statement of Financial Position
College Spirit sells sportswear with logos of major universities. At the end of 2022, the following statement of financial position account balances were available.
| Accounts payable | $104,700 | Income taxes payable | $11,400 | |
| 6,700 | Inventory | 481,400 | ||
| 23,700 | Long-term investment | 110,900 | ||
| Bonds payable | 180,000 | Note payable, short-term | 50,000 | |
| Cash | 13,300 | Prepaid rent (current) | 54,000 | |
| Common shares | 300,000 | 84,500 | ||
| Furniture | 88,000 |
Required:
1. Prepare a classified statement of financial position for College Spirit at December 31, 2022.
2. Compute College Spirit's
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