The current asset section of the Excalibur Tire Companys balance sheet consists of cash, marketable securities, accounts

Question:

The current asset section of the Excalibur Tire Company’s balance sheet consists of cash, marketable securities, accounts receivable, and inventory. The December 31, 2021, balance sheet revealed the following:
Inventory ................................$ 840,000
Total assets .........................$ 2,800,000
Current ratio ...................................2.25
Acid-test ratio ...................................1.2
Debt to equity ratio .........................1.8

Required:
Determine the following 2021 balance sheet items:
1. Current assets
2. Shareholders’ equity
3. Long-term assets
4. Long-term liabilities

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...

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