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

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Asked Feb 6, 2020
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a. $570,000
b. $400,000
c. $340,000
d. $290,000
14. Use the following data to calculate the current ratio.
Carne Auto Supplies
Balance Sheet
December 31, 2014
Cash
$ 65,000
$35,000
Accounts payable
Accounts receivable
10,000
50,000
Salaries and wages payable
Inventory
90,000
70,000
Mortgage payable
Prepaid insurance
$165,000
40,000
Total liabilities
Stock investments
80,000
Land
95,000
Buildings
$100,000
$120,000
Common stock
Less: Accumulated
250,000
Retained earnings
depreciation (30,000) 85,000
Total stockholders' equity $370,000
Trademarks
70,000
Total liabilities and
Total assets
$535,000
stockholders' equity $535,000
a. 2.07 : 1
b. 1.67: 1
c. 3.00: 1
60012Kate
2.60 : 1
d.
#F944
TAND
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a. $570,000 b. $400,000 c. $340,000 d. $290,000 14. Use the following data to calculate the current ratio. Carne Auto Supplies Balance Sheet December 31, 2014 Cash $ 65,000 $35,000 Accounts payable Accounts receivable 10,000 50,000 Salaries and wages payable Inventory 90,000 70,000 Mortgage payable Prepaid insurance $165,000 40,000 Total liabilities Stock investments 80,000 Land 95,000 Buildings $100,000 $120,000 Common stock Less: Accumulated 250,000 Retained earnings depreciation (30,000) 85,000 Total stockholders' equity $370,000 Trademarks 70,000 Total liabilities and Total assets $535,000 stockholders' equity $535,000 a. 2.07 : 1 b. 1.67: 1 c. 3.00: 1 60012Kate 2.60 : 1 d. #F944 TAND

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Expert Answer

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

...

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