Chapter 4, Problem 4.1FSC

1.

To determine

Balance Sheet: A Balance Sheet is a statement showing the position of the assets, liabilities and the owner’s equity at the end of the financial year.

Current Ratio: Current ratio is used to determine the relationship between current assets and current liabilities. The ideal current ratio is 2:1

Formula:

$\text{Current ratio}=\frac{\text{Current assets}}{\text{Current}\text{liabilities}}$

To identify: The format of balance sheet that Corporation T uses.

2.

To determine

To name: The company’s largest current asset and current liability.

3.

To determine

To calculate: Current ratio for Corporation T at January 30, 2016, and January 31, 2015.

4.

To determine

To identify: The category under which Corporation T reports furniture, fixtures, and equipment.

5.

To determine

The cost of fixed assets, accumulated depreciation, and book value of the fixed assets at January 30, 2016.