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 PastriesStatement 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 givenbelow:CashP 45,000P 109,800.00Receivables5.Total current liabilitiesLong term note payableOther long termliabilitiesInventories19,800.0024,500.00Prepaid ExpensesTotal Current AssetsBaking EquipmentOwner's capital50,000.00Other assets60,000.00Total assets191,860.00Total liabilities andequity1.2.3.4.6.

Current ratio: Current ratio is also called the liquidity ratio. Current ratio measure the…

Answered: Directions: Use the following ratio to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

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.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions