Answer:
1. Given Current Ratio = 1.7:1
Current assets / Current Liability = 1.7/1
Current assets = 1.7 * Current liability
Current liabilities = Account payable + Salaries payable + Accured interest
Current liabilities = $43,000 + $15,000 + $1,000
Total Current liabilities = $59,000
Therefore, Current assets = 1.7 * $59,000
Total Current assets = $100,300
2. Current assets = Cash and Cash equivalent + Account receivables + Inventory + Short term investment
$100,300 = $5,400 + $24,000 + $64,000 + Short term investment
Short term investment = $100,300 - $5,400 - $24,000 - $64,000
Short term investment = $6,900
3. Assets = Liabilities + Capital
Current assets + Non-Current assets = Current liabilities + Long term liabilities + Paid in capital + Retained earnings
$100,300 + $140,000 = $59,000 + $120,000 + Retained earnings
$240,300 = $213,000 + Retained earnings
Retained earnings = $27,300
