At the end of last month Great Expectations Manufacturing (GEM) had $ 41

000 in the

bank. They were owed $23

000, and had $31

000 in inventory. Their manufacturing

equipment was valued at $ 4

5

00

000 but had accumulated 2

500

000 in depreciation.

They have accounts payable of $ 15

500 and a loan that is due at the end of the year for

$ 30

000. GEM also owes the bank $220

000 for its mortgage.

a) Construct a balance sheet for GEM, with categor

ies for Assets (both current and long

-

term), Liabilities (both current and long

-

term) and Owner's Equity.

b) What is the Current Ratio?

d) What is the Equity Ratio?