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3 years ago

Use the following data to calculate the current ratio.

Business

1 answer:

White raven [17]3 years ago

6 0

Answer:

Kingbird, Inc.

Current Ratio = Current Assets/Current Liabilities

= $406,000/$147,800

= 2.75

Explanation:

a) Data and Calculations:

Kingbird, Inc. Balance Sheet December 31, 2022

Cash and cash equivalents $68000 Accounts payable $135500

Accounts receivable 103500 Salaries & wages payable 12300

Inventory 144500 Bonds payable 166000

Prepaid insurance 90000 Total liabilities $313800

Stock investments 181500

Land 195000

Buildings $225000 Common stock $239200

Less: Accumulated

depreciation (64000) 161000 Retained earnings 502500

Trademarks 112000 Total stockholders' equity $741700

Total assets $1055500 Total liabilities and stockholders'

equity $1055500

Current Assets:

Cash and cash equivalents $68,000

Accounts receivable 103,500

Inventory 144,500

Prepaid insurance 90,000

Total current assets $406,000

Current Liabilities:

Accounts payable $135,500

Salaries & wages payable 12,300

Total current liabilities $147,800

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