ACC 215: Exam 4 STUDY GUIDE Liabilities 1. XYz Company reported year-end current assets of $120,000 and current liabilities of 530,000 . The company/s current ratio is: 2. ZYQ Company reported net income of $70,000 after subtracting $15,000 for interest expense and $25,000 for taxes. Compute the company's times-interest earned ratio. 3. Marshall Corporation obtained a $8,000 loan from a bank on April 1. If the bank charges seven percent interest annually, how much interest will be accrued at December 31 ? 4. ABC Company sold merchandise on account for $2,000, which is subject to a eight percent excise tax and a five percent sales tax. What amount would the company increase its Accounts Receivable by? 5. Marshall Company reported the following borrowings in a prior annual report: Required: For each borrowing, indicate whether the bond or debenture was originally sold at its face value, a discount, or a premium. 6. During 2020, Marshall issued $250 million of zero-coupon bonds, due in 2040. The proceeds from the bond issuance were $175 million. Calculate the total expense that the company will incur over the life of the bonds