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
