Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer all the questions, i will give u a thumb! Bathsheba Company operates a wholesale hardware business. The following statement of financial position accounts and

image text in transcribedimage text in transcribed

answer all the questions, i will give u a thumb!

Bathsheba Company operates a wholesale hardware business. The following statement of financial position accounts and balances are available for Bathsheba at December 31, 2018. Accounts payable $65,100 Trucks $106,100 Accounts receivable 95,500 Income taxes payable 21,600 Interest payable 12,600 (on data processing equipment) 172,400 Inventory 187,900 Accumulated depreciation Land 41,000 (on building) 216,800 Investments (long-term) 32,700 Accumulated depreciation (on trucks) 31,200 Notes payable (due June 1, 2019) 150,000 Bonds payable (due 2021) 200,000 Prepaid insurance (for 4 months) 5,700 Building (warehouse) 419,900 Retained earnings, 12/31/2018 Cash 11,400 Salaries payable 14,400 Common shares 150,000 Investments (short-term) 21,000 Equipment, data processing 309,000 Common shares Shareholders' Equity 150,000 Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Feedback Check My Work Partially correct 2. Compute Bathsheba's working capital and current ratio at December 31, 2018. Round current ratio answer to two decimal places. Working Capital Current Ratio 3. If Bathsheba's management is concerned that a large portion of its inventory is obsolete and cannot be sold, how will its liquidity be affected? The input in the box below will not be graded, but may be reviewed and considered by your instructor

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions