Question
Brief Exercise 3-9 (Static) Calculating ratios [LO3-8] The following is a December 31, 2021, post-closing trial balance for Culver City Lighting, Inc. Account Title Debits
Brief Exercise 3-9 (Static) Calculating ratios [LO3-8]
The following is a December 31, 2021, post-closing trial balance for Culver City Lighting, Inc.
| Account Title | Debits | Credits | ||||
| Cash | $ | 55,000 | ||||
| Accounts receivable | 39,000 | |||||
| Inventory | 45,000 | |||||
| Prepaid insurance | 15,000 | |||||
| Equipment | 100,000 | |||||
| Accumulated depreciation | $ | 34,000 | ||||
| Patent (net) | 40,000 | |||||
| Accounts payable | 12,000 | |||||
| Interest payable | 2,000 | |||||
| Notes payable (due in 10 years) | 100,000 | |||||
| Common stock | 70,000 | |||||
| Retained earnings | 76,000 | |||||
| Totals | $ | 294,000 | $ | 294,000 | ||
a. Calculate the current ratio. b. Calculate the acid-test ratio. c. Calculate the debt to equity ratio.
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Auditors Guide To IT Auditing
Authors: Richard E. Cascarino
2nd Edition
1118147618, 978-1118147610
