Answered: Total Current Assets $ 1,216,000…

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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Question

Using ratios to reconstruct a balance sheet

The following data are adapted from the financial statements of Bridget’s Shops, Inc.:

Prepare Bridget’s condensed balance sheet as of December 31, 2018.

Total Current Assets
$ 1,216,000
Accumulated Depreciation
2,000,000
Total Liabilities
1,540,000
Preferred Stock
Debt Ratio
55%
Current Ratio
1.60

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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