Several accounts that appeared on Spring's 2017 balance sheet are as follows: Accounts Payable $78,000 Equipment $950,000 Marketable Securities 40,000 Taxes Payable 15,000 Accounts Receivable 143,600 Retained Earnings 250,000 Notes Payable, 12%, due in 60 days 20,000 Inventory 165,000 Capital Stock 1,150,000 Allowance for Doubtful Accounts 20,000 Salaries Payable 10,000 Land 600,000 Cash 65,000 Required: 1. Prepare the Current Liabilities section of Spring's 2017 balance sheet. Spring Partial Balance Sheet As Of December 31, 2017 Current liabilities: Accounts payable $ Notes payable, 12%, due in 60 days Taxes payable Salaries payable Total current liabilities $ 2. Compute Spring's working capital. $ 3. Compute Spring's current ratio. Round your answer to one decimal place. fill in the blank: 1 What does this ratio indicate about Spring’s condition? It seems that Spring has sufficient current assets to meet its short-term obligations.
Several accounts that appeared on Spring's 2017 balance sheet are as follows: Accounts Payable $78,000 Equipment $950,000 Marketable Securities 40,000 Taxes Payable 15,000 Accounts Receivable 143,600 Retained Earnings 250,000 Notes Payable, 12%, due in 60 days 20,000 Inventory 165,000 Capital Stock 1,150,000 Allowance for Doubtful Accounts 20,000 Salaries Payable 10,000 Land 600,000 Cash 65,000 Required: 1. Prepare the Current Liabilities section of Spring's 2017 balance sheet. Spring Partial Balance Sheet As Of December 31, 2017 Current liabilities: Accounts payable $ Notes payable, 12%, due in 60 days Taxes payable Salaries payable Total current liabilities $ 2. Compute Spring's working capital. $ 3. Compute Spring's current ratio. Round your answer to one decimal place. fill in the blank: 1 What does this ratio indicate about Spring’s condition? It seems that Spring has sufficient current assets to meet its short-term obligations.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Several accounts that appeared on Spring's 2017
balance sheet are as follows:Accounts Payable $78,000 Equipment $950,000 Marketable Securities 40,000 Taxes Payable 15,000 Accounts Receivable 143,600 Retained Earnings 250,000 Notes Payable, 12%, due in 60 days 20,000 Inventory 165,000 Capital Stock 1,150,000 Allowance for Doubtful Accounts 20,000 Salaries Payable 10,000 Land 600,000 Cash 65,000 Required:
1. Prepare the Current Liabilities section of Spring's 2017 balance sheet.
Spring Partial Balance Sheet As Of December 31, 2017 Current liabilities: Accounts payable $ Notes payable, 12%, due in 60 days Taxes payable Salaries payable Total current liabilities $ 2. Compute Spring's working capital.
$
3. Compute Spring's current ratio. Round your answer to one decimal place.
fill in the blank: 1
What does this ratio indicate about Spring’s condition?
It seems that Spring has sufficient current assets to meet its short-term obligations.
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