The current asset section of the Excalibur Tire Company’s balance sheet consists of cash, marketable securities, accounts receivable, and inventory. The December 31, 2021, balance sheet revealed the following: Inventory$840,000 Total assets$2,800,000 Current ratio 2.25 Acid-test ratio 1.2 Debt to equity ratio 1.8 Required:Determine the following 2021 balance sheet items: 1.Current assets2.Shareholders' equity3.Long-term assets4.Long-term liabilities

Ratio analysis means where different ratio of various years of years companies has been compared and…

Answered: The current asset section of the…

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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The current asset section of the Excalibur Tire Company’s balance sheet consists of cash, marketable securities, accounts receivable, and inventory. The December 31, 2021, balance sheet revealed the following:


Inventory	$	840,000
Total assets	$	2,800,000
Current ratio		2.25
Acid-test ratio		1.2
Debt to equity ratio		1.8

Required:
Determine the following 2021 balance sheet items:

1.Current assets

2.Shareholders' equity

3.Long-term assets

4.Long-term liabilities

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