Killua Corporation’s Statement of Financial Positions at December 31, 2021, shows the following: (check the attached photo)Determine the following: net working capital; current ratio; andquick ratio. Current assetsCashP4,000Marketable securities8,000Accounts receivable100,000Inventories120,000Prepaid expenses1,000Total current assetsP233.000Current liabilitiesNotes payableP5,000Accounts payableAccrued expensesIncome taxes payable150,00020,0001,000Total current liabilitiesP176,000Long-term liabilitiesP340,000

Name: Killua Corporation’s Statement of Financial Positions at December 31,
Uploaded: 2022-11-18T00:26:54.000Z
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Description: Killua Corporation’s Statement of Financial Positions at December 31, 2021, shows the following: (check the attached photo)Determine the following: net working capital; current ratio; andquick ratio. Current assetsCashP4,000Marketable securities8,000

Quick assets=Total current assets-Inventory-Prepaid expenses=P 233,000-P 120,000-P 1,000=P 112,000

Answered: Killua Corporation’s Statement of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Killua Corporation’s Statement of Financial Positions at December 31, 2021, shows the following: (check the attached photo)

Determine the following:

net working capital;
current ratio; and
quick ratio.

Current assets
Cash
P4,000
Marketable securities
8,000
Accounts receivable
100,000
Inventories
120,000
Prepaid expenses
1,000
Total current assets
P233.000
Current liabilities
Notes payable
P5,000
Accounts payable
Accrued expenses
Income taxes payable
150,000
20,000
1,000
Total current liabilities
P176,000
Long-term liabilities
P340,000

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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