Homework Help is Here – Start Your Trial Now!
Business
Accounting
The chief financial officer (CFO) of Wildhorse Co requested that the accounting department prepare a preliminary balance sheet on December 30, 2022, so that the CFO could get an idea of how the company stood. He knows that certain debt agreements with its creditors require the company to maintain a current ratio of at least 2:1. The preliminary balance sheet is as follows. Wildhorse Co. Balance Sheet December 30, 2022 Current assets Cash Accounts receivable Prepaid insurance Equipment (net) Total assets Current liabilities Accounts payable Salaries and wages payable Long-term abilities Notes payable Total abilities Stockholders equity Common stock Rusained samines Total aplies and stockholders 49 $26,300 26,700 6,400 $59.400 200,000 51800 201,600 $261.000 $21,000 4 12.000 $33,000 76.400 109400 151,600 $261000

The chief financial officer (CFO) of Wildhorse Co requested that the accounting department prepare a preliminary balance sheet on December 30, 2022, so that the CFO could get an idea of how the company stood. He knows that certain debt agreements with its creditors require the company to maintain a current ratio of at least 2:1. The preliminary balance sheet is as follows. Wildhorse Co. Balance Sheet December 30, 2022 Current assets Cash Accounts receivable Prepaid insurance Equipment (net) Total assets Current liabilities Accounts payable Salaries and wages payable Long-term abilities Notes payable Total abilities Stockholders equity Common stock Rusained samines Total aplies and stockholders 49 $26,300 26,700 6,400 $59.400 200,000 51800 201,600 $261.000 $21,000 4 12.000 $33,000 76.400 109400 151,600 $261000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please do not give solution in image format thanku 

The chief financial officer (CFO) of Wildhorse Co requested that the accounting department prepare a preliminary balance sheet on December 30, 2022, so that the CFO could get an idea of how the company stood. He knows that certain debt agreements with its creditors require the company to maintain a current ratio of at least 2:1. The preliminary balance sheet is as follows. Wildhorse Co. Balance Sheet December 30, 2022 Current assets Cash Accounts receivable Prepaid insurance Equipment (net) Total assets Current liabilities Accounts payable Salaries and wages payable Long-term abilities Notes payable Total liabilities Stockholders equity Common stock Ratained samine Total liabilities and stockholder 40Y $26,300 26,700 6,400 $59.400 100000 51600 201,600 $261.000 4 $21,000 12.000 $33,000 76.400 109400 151,600 $281.000
Transcribed Image Text:The chief financial officer (CFO) of Wildhorse Co requested that the accounting department prepare a preliminary balance sheet on December 30, 2022, so that the CFO could get an idea of how the company stood. He knows that certain debt agreements with its creditors require the company to maintain a current ratio of at least 2:1. The preliminary balance sheet is as follows. Wildhorse Co. Balance Sheet December 30, 2022 Current assets Cash Accounts receivable Prepaid insurance Equipment (net) Total assets Current liabilities Accounts payable Salaries and wages payable Long-term abilities Notes payable Total liabilities Stockholders equity Common stock Ratained samine Total liabilities and stockholder 40Y $26,300 26,700 6,400 $59.400 100000 51600 201,600 $261.000 4 $21,000 12.000 $33,000 76.400 109400 151,600 $281.000
(3) Your answer is incorrect (a) Calculate the current ratio and working capital based on the preliminary balance sheet (Round current ratio to 1 decimal place, es 07:1) Current ratio Working capital $ eTextbook and Media Save for Later 10 Attempts: 1 of Jused Submk Answer
Transcribed Image Text:(3) Your answer is incorrect (a) Calculate the current ratio and working capital based on the preliminary balance sheet (Round current ratio to 1 decimal place, es 07:1) Current ratio Working capital $ eTextbook and Media Save for Later 10 Attempts: 1 of Jused Submk Answer
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Regulations
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.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS