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 Equipment 23,000 Cash 15,000 51,000 Common Stock 41,250 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 Assets BALANCE SHEETS September 30, 2015 October 1, 2015 0 $ 0 Accounts Receivable 0 0 Supplies Inventory 0 0 ÷ 0 0 Total Assets $ 0 $ 0 Liabilities Notes Payable Total Liabilities $ 0 $ 0 0 0 0 Stockholders' Equity 0 0 Retained Earnings 0 0 Total Stockholders Equity 0 0 Total Liabilities and Stockholders' Equity $ 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.) September 30 October 1 Current Ratio Quick Ratio 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 Equipment 23,000 Cash 15,000 51,000 Common Stock 41,250 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 Assets BALANCE SHEETS September 30, 2015 October 1, 2015 0 $ 0 Accounts Receivable 0 0 Supplies Inventory 0 0 ÷ 0 0 Total Assets $ 0 $ 0 Liabilities Notes Payable Total Liabilities $ 0 $ 0 0 0 0 Stockholders' Equity 0 0 Retained Earnings 0 0 Total Stockholders Equity 0 0 Total Liabilities and Stockholders' Equity $ 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.) September 30 October 1 Current Ratio Quick Ratio 0 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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
Equipment
23,000 Cash
15,000
51,000 Common Stock
41,250
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
Assets
BALANCE SHEETS
September
30,
2015
October 1,
2015
0 $
0
Accounts Receivable
0
0
Supplies Inventory
0
0
÷
0
0
Total Assets
$
0 $
0
Liabilities
Notes Payable
Total Liabilities
$
0 $
0
0
0
0
Stockholders' Equity
0
0
Retained Earnings
0
0
Total Stockholders Equity
0
0
Total Liabilities and Stockholders' Equity $
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.)
September 30
October 1
Current Ratio
Quick Ratio
0
0
0
0
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