On December 31, 20, the following selected accounts and amounts appeared on the balance sheet for Duncan

Question:

On December 31, 20—, the following selected accounts and amounts appeared on the for Duncan Company. Determine the amount of the working capital and the current ratio. (Round to two decimal places.)
Building ................... $ 180,000
Prepaid Insurance .............. 1,800
Merchandise Inventory ............ 85,000
Store Equipment ................ 11,000
Unearned Fees ................ 1,200
Notes Payable (due in six months) ......... 6,000
Accumulated Depreciation, Building ........ 62,000
Accounts Payable ............... 25,000
Land 50,000 Cash .............. 50,000
Store Supplies ................. 1,400
Accumulated Depreciation, Store Equipment .... 8,000
Notes Receivable (due in four months) ........ 1,500
Mortgage Payable (current portion) ....... 4,400
Salaries Payable ................ 1,600
M. Duncan, Capital ............. 161,500
Mortgage Payable (due in four years) ...... 86,000

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...