Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. current liabilities and ratios several accounts th

Current Liabilities and Ratios Several accounts that appeared on Spring's 2017 balance sheet are as...

60.1K

Verified Solution

Question

Accounting

Current Liabilities and Ratios

Several accounts that appeared on Spring's 2017 balance sheet are as follows:

Accounts Payable $74,000 Equipment $950,000
Marketable Securities 40,000 Taxes Payable 15,000
Accounts Receivable 35,600 Retained Earnings 250,000
Notes Payable, 12%, due in 60 days 20,000 Inventory 165,000
Capital Stock 1,150,000 Allowance for Doubtful Accounts 20,000
Salaries Payable 10,000 Land 600,000
Cash 65,000

Required:

1. Prepare the Current Liabilities section of Spring's 2017 balance sheet.

Spring
Partial Balance Sheet
As Of December 31, 2017
Current liabilities:
$
Total current liabilities $

2. Compute Spring's working capital.

$_____________

3. Compute Spring's current ratio. Round your answer to one decimal place.

______________ : 1

What does this ratio indicate about Springs condition?

It seems that Spring has (Sufficient/Insufficient) ___________ current assets to meet its short-term obligations.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The landing of military fighter jets on aircraft carrier requires great skill, so on occasions it...

Basic Math
Q

A spherical motile bacteria with a radius of 1.0 microns and a density approximately equal to...

Mechanical Engineering
Q

2 What s the empirical formula of a compound composed of 22 55 P and...

Basic Math
Q

The trend of covid cases in Ontario seems to be a neverending sinusoidal function of...

Basic Math
Q

Assume SAT Math scores are normally distributed with a mean of 500 and standard deviation...

Basic Math
Q

Determine the amplitude and period of the given function. Graph the function.y = 4 sin...

Basic Math
Q

how to solve for the following questions Entries for...

Accounting
Q

In 2017, Brittany, who is single, cares for her father Raymond. Brittany pays the bills...

Accounting
Q

Question 2 Mary Walker, president of Rusco Company, considers $24,000 to be the minimum...

Accounting
Q

Suppose the exchange rate is $1.06/Fr. Let r $ = 8%, r Fr = 7%,...

Accounting
Q

Superior Products, Inc. is interested in producing and selling a deluxe electric razor. Market research...

Accounting
Q

Lin Corporation has a single product whose selling price is $140 per unit and whose...

Accounting