Farmore Medical Service reported the following items (amounts in thousands): Requirements 1. Classify each item as (a)

Question:

Farmore Medical Service reported the following items (amounts in thousands):

Requirements
1. Classify each item as (a) income statement or balance sheet and as (b) debit balance or credit balance.
2. How much net income (or net loss) did Farmore report for the year?
3. Compute Farmore€™s quick (acid-test) ratio. Round to two decimal places. Evaluate Farmore Medical Service€™s liquidityposition.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...