1) Classify each of the following accounts taken from Faust Company's balance sheet

Accounts payable

Accounts receivable

Cash

L. Dawn, capital

Patents

Salaries payable

Merchandise inventory

Short-term investments (to be sold in 7 months)

Accumulated depreciationequipment

Buildings

Land (in use)

Notes payable (due in 2 years)

Supplies

Equipment

Prepaid expenses

2)Selected financial information is available for Cullumber Co.

Year 1 Year 2 Year 3

Current assets 97,000 147,000 205,000

Current liabilities 61,000 105,000 85,000

Calculate the working capital for Cullumber Co. for the three years.

Calculate the current ratio of Cullumber Co. for the three years.

3) At the end of its fiscal year, the adjusted trial balance of Crane Company is as follows:

CRANE COMPANY

Adjusted Trial Balance

July 31, 2017

Debit Credit

Cash $3,780

Accounts receivable 11,430

Prepaid rent 500

Supplies 750

Debt investments 8,000

Equipment 19,950

Accumulated depreciationequipment $5,700

Patents 18,300

Accounts payable 4,305

Interest payable 750

Unearned revenue 2,050

Notes payable (due on July 1, 2019) 45,500

B. Crane, capital 28,285

B. Crane, drawings 17,100

Service revenue 74,700

Interest revenue 320

Depreciation expense 2,850

Interest expense 3,000

Rent expense 18,550

Salaries expense 36,550

Supplies expense 20,850

$161,610 $161,610

Prepare an income statement for the year. Mr. Crane invested $5,000 cash in the business during the year.

Prepare a statement of owner's equity for the year. Mr. Crane invested $5,000 cash in the business during the year.

Prepare a classified balance sheet at July 31, 2017.

4) Indigo Books & Music Inc. ("Indigo") is Canada's largest book, gift, and specialty toy retailer, operating stores in all ten provinces and one territory in Canada and offering online sales through its indigo.ca website. The following data (in thousands) were taken from Indigo's financial statements:

March 28, 2015 March 29, 2014 March 30, 2013

Cash and cash equivalents $203,162 $157,578 $210,562

Accounts receivable 4,896 5,582 7,126

Inventories 208,395 218,979 216,533

Income tax receivable 25

Prepaid expenses 5,477 5,184 4,153

Current assets 421,955 387,323 438,374

Current liabilities 223,239 197,627 214,031

A) Calculate the working capital, current ratio, and acid-test ratio for each year.