Use the following data to calculate the current ratio. Wildhorse Co. Balance Sheet December 31, 2022 Cash $127300 Accounts payable $172000 Accounts receivable 124800 Salaries and wages payable 32600 Inventory 200100 Note payable (due 2025) 270100 Short-term investments 92500 Total liabilities $474700 Land (held for future use) 258500 Land 285000 Buildings $339500 Common stock $361000 Less: Accumulated depreciation (61800) 277700 Retained earnings 734900 Franchise 204700 Total stockholders' equity $1095900 Total assets $1570600 Total liabilities and stockholders' equity $1570600 1.12 : 1 2.66 : 1 3.17 : 1 2.20 : 1
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Use the following data to calculate the
| Wildhorse Co. | |||||
| December 31, 2022 | |||||
|
Cash
|
$127300 |
Accounts payable
|
$172000 | ||
|---|---|---|---|---|---|
|
|
124800 |
Salaries and wages payable
|
32600 | ||
|
Inventory
|
200100 |
Note payable (due 2025)
|
270100 | ||
|
Short-term investments
|
92500 |
Total liabilities
|
$474700 | ||
|
Land (held for future use)
|
258500 | ||||
|
Land
|
285000 | ||||
|
Buildings
|
$339500 |
Common stock
|
$361000 | ||
|
Less:
|
(61800) | 277700 |
|
734900 | |
|
Franchise
|
204700 |
Total
|
$1095900 | ||
|
Total assets
|
$1570600 |
Total liabilities and stockholders' equity
|
$1570600 |
1.12 : 1
2.66 : 1
3.17 : 1
2.20 : 1
Trending now
This is a popular solution!
Learn your way
Includes step-by-step video
Step by step
Solved in 2 steps
