Directions: Use the following ratio to complete Gerlie's Bread and Pastries Statement of Financial Position: a. Current ratio is 0.70. b. Acid-test ratio is 0.50. Gerlie's Bread and Pastries' incomplete Statement of Financial Position is given below: Cash P 45,000 P 109,800.00 Receivables 5. Total current liabilities Long term note payable Other long term liabilities Inventories 19,800.00 24,500.00 Prepaid Expenses Total Current Assets Baking Equipment Owner's capital 50,000.00 Other assets 60,000.00 Total assets 191,860.00 Total liabilities and equity 1. 2. 3. 4. 6.

Directions: Use the following ratio to complete Gerlie's Bread and Pastries Statement of Financial Position: a. Current ratio is 0.70. b. Acid-test ratio is 0.50. Gerlie's Bread and Pastries' incomplete Statement of Financial Position is given below: Cash P 45,000 P 109,800.00 Receivables 5. Total current liabilities Long term note payable Other long term liabilities Inventories 19,800.00 24,500.00 Prepaid Expenses Total Current Assets Baking Equipment Owner's capital 50,000.00 Other assets 60,000.00 Total assets 191,860.00 Total liabilities and equity 1. 2. 3. 4. 6.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 16P: Ratios Analyses: McCormick Refer to the information for McCormick above. Additional information for...

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Question

100%

use the following ratio to complete the statement of financial position. other details are seen in the attached photo.

Directions: Use the following ratio to complete Gerlie's Bread and Pastries
Statement of Financial Position:
a. Current ratio is 0.70.
b. Acid-test ratio is 0.50.
Gerlie's Bread and Pastries' incomplete Statement of Financial Position is given
below:
Cash
P 45,000
P 109,800.00
Receivables
5.
Total current liabilities
Long term note payable
Other long term
liabilities
Inventories
19,800.00
24,500.00
Prepaid Expenses
Total Current Assets
Baking Equipment
Owner's capital
50,000.00
Other assets
60,000.00
Total assets
191,860.00
Total liabilities and
equity
1.
2.
3.
4.
6.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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