Debit Credit Cash $31,000 Accounts Receivable 7,400 Prepaid Insurance 21,000 Accounts Payable $15,100 Salaries Payable 16,500 Common Stock 12,300 Service Revenue 73,000 Administrative Expenses 57,500 $116,900 $116,900 Using the above account balances, compute working capital and current ratio. Round "Current ratio" answer to two decimal places. A. Working capital B. Current ratio
Debit Credit Cash $31,000 Accounts Receivable 7,400 Prepaid Insurance 21,000 Accounts Payable $15,100 Salaries Payable 16,500 Common Stock 12,300 Service Revenue 73,000 Administrative Expenses 57,500 $116,900 $116,900 Using the above account balances, compute working capital and current ratio. Round "Current ratio" answer to two decimal places. A. Working capital B. Current ratio
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Debit
Credit
Cash
$31,000
Accounts Receivable
7,400
Prepaid Insurance
21,000
Accounts Payable
$15,100
Salaries Payable
16,500
Common Stock
12,300
Service Revenue
73,000
Administrative Expenses
57,500
$116,900
$116,900
Using the above account balances, compute working capital and current ratio.
Round "Current ratio" answer to two decimal places.
A. Working capital
В.
Current ratio](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F17995e28-0478-4f36-b6e8-96ac8a7c7f55%2F61a29eee-a519-4e75-8506-5570f5c6700c%2Fr1ti0e7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Debit
Credit
Cash
$31,000
Accounts Receivable
7,400
Prepaid Insurance
21,000
Accounts Payable
$15,100
Salaries Payable
16,500
Common Stock
12,300
Service Revenue
73,000
Administrative Expenses
57,500
$116,900
$116,900
Using the above account balances, compute working capital and current ratio.
Round "Current ratio" answer to two decimal places.
A. Working capital
В.
Current ratio
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