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Notes Payable, long-term Prepaid Rent $ 9,200 Accounts Payable $ 3,600 2,500 Accounts Receivable 6,600 Salaries Payable Service Revenue 2,600 Cash 3,500 15,600 Depreciation Expense-Equip. 1,300 Equipment 400 Office Supplies Accumulated Depreciation-Equip. 24,000 4,000 Common Stock 900 Rent Expense 6,000 Advertising Expense 1,800

Notes Payable, long-term Prepaid Rent $ 9,200 Accounts Payable $ 3,600 2,500 Accounts Receivable 6,600 Salaries Payable Service Revenue 2,600 Cash 3,500 15,600 Depreciation Expense-Equip. 1,300 Equipment 400 Office Supplies Accumulated Depreciation-Equip. 24,000 4,000 Common Stock 900 Rent Expense 6,000 Advertising Expense 1,800

FINANCIAL ACCOUNTING
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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Calculating the current ratio

End of the Line Montana Refrigeration has these account balances at December 31, 2018:

Requirements

  1. Calculate End of the Line Montana Refrigeration’s current ratio.
  2. How much in current assets does End of the Line Montana Refrigeration have for every dollar of current liabilities that it owes?

 

Notes Payable, long-term Prepaid Rent $ 9,200 Accounts Payable $ 3,600 2,500 Accounts Receivable 6,600 Salaries Payable Service Revenue 2,600 Cash 3,500 15,600 Depreciation Expense-Equip. 1,300 Equipment 400 Office Supplies Accumulated Depreciation-Equip. 24,000 4,000 Common Stock 900 Rent Expense 6,000 Advertising Expense 1,800
Transcribed Image Text:Notes Payable, long-term Prepaid Rent $ 9,200 Accounts Payable $ 3,600 2,500 Accounts Receivable 6,600 Salaries Payable Service Revenue 2,600 Cash 3,500 15,600 Depreciation Expense-Equip. 1,300 Equipment 400 Office Supplies Accumulated Depreciation-Equip. 24,000 4,000 Common Stock 900 Rent Expense 6,000 Advertising Expense 1,800
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