A fixed asset priced at $100,000 is acquired by trading in a similar asset that has a book value of $25,000. Assuming that the transaction does not have commercial substance and that $70,000 cash is paid for the new asset, what is the cost of the new assets for financial reporting purposes? (In other words, what should you record in the books for the new asset?) a) $100,000 b) $95,000 c) $75,000 d) $70,000 e) $30,000 You know the following information for Jones Company; Cash is $5,000, accounts receivable are $15,000, road equipment is $10,000, accounts payable are $15,000 and 5-year Mortgage payable is 30.000. What is the current ratio for this company? a) 2.0 b) .25 c) .33 d) 1.33 e) .75 In a classified balance sheet, what section would you find accumulated depreciation? a) current assets b) plant assets c) intangible assets d) long-term investments e) liabilities According to your textbook, when a company prepares four statements, which is the final statement usually prepared? a) statement of cash flows b) income statement c) balance sheet d) statement of changes in owner's equity e) post-closing trial balance