Question
11. Granite State Telephone and Telegram has these account balances at December 31, 2011: Note payable, long term: 12,200 Prepaid rent 2100 salary payable 2000
11. Granite State Telephone and Telegram has these account balances at December 31, 2011:
Note payable, long term: 12,200
Prepaid rent 2100
salary payable 2000
service revenue 33300
supplies 1200
accounts payable 4400
accounts receivable 6600
cash 2500
depreciation expense 4000
equipment 12000.
R1. Compute Granite State Telephone and Telegrams current ratio and debt ratio.
R2. How much in current assets does Granite State Telephone and Telegram have for every dollar of current liabilities that it owes? Current ratio = Total current assets Total current liabilities Calculation = Answer = = Debt ratio = Total liabilities Total assets Calculation = Answer = $23,900 R2 Answer: per every dollar of liabilities they have ?
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External Auditing Tutorial
Authors: Jo Osborne, John Taylor
1st Edition
9781909173965, 1909173967
