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1. Harrington Company. Harrington's condensed and adapted balance sheet at December 31, 2012, follows: Total current amets Properties, plant, equipment, and other assets In millions
1. Harrington Company. Harrington's condensed and adapted balance sheet at December 31, 2012, follows: Total current amets Properties, plant, equipment, and other assets In millions 5158 163 $32.1 586 53 18.2 $32.1 Total current liabilities Total long-term liabilities Total stockholders' equity Assume that during the of the following year, 2013, Harrington completed the following transactions: a. Paid half the current liabilities. b. Borrowed $2.0 million on long-term debt. c. Earned revenue, $2.4 million, on account. d. Paid selling expense of $0.7 million. e. Accrued general expense of $0.5 million. Credit General Expense Payable, a current liability. f. Purchased equipment for $4.0 million, paying cash of $1.5 million and signing a longterm note payable for $2.5 million. g. Recorded depreciation expense of $0.4 million. - Compute Harrington's current ratio, net working capital and debt ratio at December 31, 2012. - Make the adjusting entries for year 2013 transactions. - Construct Income Statement, Retained Earning Statement and Balance Sheet at December 31, 2013. - Compute Harrington's current ratio, net working capital and debt ratio at December 31, 2013. Did the net working capital, current ratio and debt ratio improve or deteriorate during 2013? (Show your solution step by step) (70 Points)
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