Using ratios to reconstruct a balance sheetTraditional Mills’s balance sheet appears as Follows amounts in thousands:Use the following ratio data to complete Traditional Mills’s balance sheet.Current ratio is 0.72.Acid-test ratio is 0.36. TRADITIONAL MILLSBalance SheetDecember 31, 2018AssetsLiabilitiesCash45 Total Current Liabilities$2,500Accounts Receivables(e)(a) Long-term Note Payable800 Other Long-term LiabilitiesMerchandise Inventory760Prepaid Expenses(b) Total LiabilitiesTotal Current Assets(e)Plant Assets, Net(d)Stockholders' EquityOther Assets2,490 Stockholders' Equity2,450Total Assets$7,000 Total Liabilities and Stockholders' Equity

Answered: TRADITIONAL MILLS Balance Sheet…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Using ratios to reconstruct a balance sheet

Traditional Mills’s balance sheet appears as Follows amounts in thousands:

Use the following ratio data to complete Traditional Mills’s balance sheet.

Current ratio is 0.72.
Acid-test ratio is 0.36.

TRADITIONAL MILLS
Balance Sheet
December 31, 2018
Assets
Liabilities
Cash
45 Total Current Liabilities
$2,500
Accounts Receivables
(e)
(a) Long-term Note Payable
800 Other Long-term Liabilities
Merchandise Inventory
760
Prepaid Expenses
(b) Total Liabilities
Total Current Assets
(e)
Plant Assets, Net
(d)
Stockholders' Equity
Other Assets
2,490 Stockholders' Equity
2,450
Total Assets
$7,000 Total Liabilities and Stockholders' Equity

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.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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.

Similar questions