a. \$570,000b. \$400,000c. \$340,000d. \$290,00014. Use the following data to calculate the current ratio.Carne Auto SuppliesBalance SheetDecember 31, 2014Cash\$ 65,000\$35,000Accounts payableAccounts receivable10,00050,000Salaries and wages payableInventory90,00070,000Mortgage payablePrepaid insurance\$165,00040,000Total liabilitiesStock investments80,000Land95,000Buildings\$100,000\$120,000Common stockLess: Accumulated250,000Retained earningsdepreciation (30,000) 85,000Total stockholders' equity \$370,000Trademarks70,000Total liabilities andTotal assets\$535,000stockholders' equity \$535,000a. 2.07 : 1b. 1.67: 1c. 3.00: 160012Kate2.60 : 1d.#F944TAND

Question
1 views

Thank you

check_circle

Step 1

Calculate the current assets:

Current Assets = Cash + Accounts Receivable + Inventory + Prepaid Insurance
Current Assets = \$35,000 + \$50,000 + \$70,000 + \$40,000
Current Assets = \$195,000

Step 2

Calculate the current liabilities:

Current liabilities=Accounts payable+ Salaries and wages payable

...

Want to see the full answer?

See Solution

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in