ACC 302 - Current Liabilities Case - 40 points Additional information. No adjustanents have becn made for ary of the additional information. No reversing eritries were made at 1/1/x. (Hintst! Do pot change "Cash") Finacial statements afe not issucd until March of 2 .) a. Smyth has a policy that allows cmployees 8 vacation days anesaslly. The vacation days vert after an employee has been employed for six months. Smyth has a woekforce of 20 empioyees each of whom has been with the company for at least thrce years. The average weekly salary is $1,000 (acsume a five day work. weck). During the year employees took vacation hours totaling 112 days. The bookkecper debitad Waee Expenso when the employecs were paid for these days. (Ignore payroll taves) b. Sales include state sales lax at 4%. The boskkeeper debits Salcs Tax Expense when wales taxes are paid to the sate. At year end, sales tax of $21,000 is due to the state. Sales Tax Payable at lillel was raro. Warranty coets are errimated at 1.6% of selling price. Actual warranty costs incured during the year totaled 6. Warranty costs are errimated at 1.656 of selling price. Actual warranty costs incurt $245,000. The bookkecper debits wartanty expense as these costs are incurred. d. The corporate tax rafe is 40%. c. The company presideet reccives a beeus based upon 10% of net incoene. f. 51,000,000 of the boads makure 6/3052. The minutes of the last board tinecting state that the comapaiy olane to refinatece the bonds on a long-terin basis when they mature 51,000.000 of the bonds mafured 1/31/2r . Tbey were extinguished by issaing commoa stock. Fodny"s date is 2162 ). h. Smyth issued a 2 year, 590,000 , noainserest bearing note oa 12/31/k1 for the purchase of machine. The market rafe of inferest is 10%. Cash dividends of $15,000 were declared on 12/5/x to be paid to stockholders of recoed on 1/15/2 to be paid 1/31/x2. The company is suing a competitor for patent infringerecat. The attonecys believe that Smyth will win the law suic. The settlement may be for as moch as 590,000 . The attomeys believe Smyth will pecobably reccive 540,000. The company is being sued by a customer who was hurt while visiting the corporate office. The antoencys believe that Smith may lose as much as $100,000, but that the cussomer will probably sette for $30,000. Required: 1. Prepare a balance sheet and income staternent for Smyth Company. Show calculations related to the above additional informatioa. 2. Calculate the following financial information: a. Working capital c. Quick ratio b. Curreat ratio