ACCT.PRINCIPLES-WILEYPLUS NEXTGEN
14th Edition
ISBN: 9781119709954
Author: Weygandt
Publisher: WILEY
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Use the following information on current assets and current liabilities to compute and interpret the acidtest ratio. Explain what the acid-test ratio of a company measures. Cash . $1,490 Prepaid expenses . $ 700 Accounts receivable . 2,800 Accounts payable . 5,750 Inventory . 6,000 Other current liabilities . 850
Gulf Cement, Inc. reports the following assets and liabilities, Compute the totals that
would appear in the corporation's basic accounting equation (Assets = Liabilities +
Stockholders' Equity (Capital Stock)).
Cash...Asset..
OMR 37,000 Assets e Yi abilities + Equity-
Accounts Payable....liabi libies OMR 15,000 30 800
Supplies....A seps.
OMR 1, 800
Loan Payable. ibiliies
OMR 9,000
Inventory....AScts.
OMR 12,000
Use the basic accounting equation to answer these questions.
(a) The liabilities of Lantz Company are $94,900 and the stockholders' equity is $279,000. What is the amount of Lantz Company's total assets?
Total assets
(b) The total assets of Salley Company are $194,000 and its stockholders' equity is $90,000. What is the amount of its total liabilities?
Total liabilities
(c) The total assets of Brandon Co. are $81
000 and its liabilities are equal to one-fourth of its total assets. What is the amount of Brandon Co.'s stockholders' equity?
Stockholders' equity
$
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