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Below are account balances for Raver, Inc. begin{tabular}{|l|r|} hline multicolumn{1}{|c|}{ Account Titles } & Amounts hline Salaries payable & 20,000 hline Retained earnings
Below are account balances for Raver, Inc. \begin{tabular}{|l|r|} \hline \multicolumn{1}{|c|}{ Account Titles } & Amounts \\ \hline Salaries payable & 20,000 \\ \hline Retained earnings & 200,000 \\ \hline Prepaid rent & 70,000 \\ \hline Notes payable (due in three years) & 100,000 \\ \hline Marketable securities & 50,000 \\ \hline Land & $21,000 \\ \hline Inventory & 55,000 \\ \hline Cash & 120,000 \\ \hline Capital stock & 300,000 \\ \hline Building & 200,000 \\ \hline Accounts receivable & 45,000 \\ \hline Accounts payable & 130,000 \\ \hline \end{tabular} 3. Calculate the current ratio. (round to one decimal place) to 1 4. Calculate the working capital. \begin{tabular}{|l|c|c|c|} \hline Current Ratio & 2020 & 2019 & 2018 \\ \hline Raver, inc. & From above & 2.0 to 1 & 1.9 to 1 \\ \hline Industry Average & 2.8 to 1 & N/A & N/A \\ \hline \end{tabular} 5. Comment on Ravers debt paying ability compared to external and internal data: Problem 5 Income Statement Ratios 12 points Amounts from Exactos income statement are presented below. \begin{tabular}{|l|r|} \hline & 2020 \\ \hline Selling expenses & 250,000 \\ \hline Net Sales & $2,400,000 \\ \hline Income tax expense & 200,000 \\ \hline General and administrative expenses & 150,000 \\ \hline Cost of goods sold & 1,656,000 \\ \hline \end{tabular} Show your work for all calculations
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