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 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 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
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
Related questions
Question
qw
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
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub