Current Liabilities and Ratios

Several accounts that appeared on Spring's 2017 balance sheet are as follows:

Accounts Payable	$84,000		Equipment	$950,000
Marketable Securities	40,000		Taxes Payable	15,000
Accounts Receivable	175,700		Retained Earnings	250,000
Notes Payable, 12%, due in 60 days	20,000		Inventory	165,000
Capital Stock	1,150,000		Allowance for Doubtful Accounts	20,000
Salaries Payable	10,000		Land	600,000
Cash	65,000

Required:

1. Prepare the Current Liabilities section of Spring's 2017 balance sheet.

Spring Partial Balance Sheet As Of December 31, 2017

Current liabilities:
Accounts payableAccounts receivableAllowance for doubtful accountsCapital stockCashInventoryAccounts payable	$Accounts payable
Accounts receivableAllowance for doubtful accountsEquipmentInventoryMarketable securitiesNotes payable, 12%, due in 60 daysNotes payable, 12%, due in 60 days	Notes payable, 12%, due in 60 days
Capital stockInventoryLandMarketable securitiesRetained earningsTaxes payableTaxes payable	Taxes payable
Accounts receivableCapital stockCashEquipmentRetained earningsSalaries payableSalaries payable	Salaries payable
Total current liabilities	$fill in the blank d318bdfe504205f_9

Feedback

Prepare the liabilities section of the balance sheet.

2. Compute Spring's working capital.

$fill in the blank 2a42f30bf01bfe0_1

3. Compute Spring's current ratio. Round your answer to one decimal place.

fill in the blank 2a42f30bf01bfe0_2 : 1

What does this ratio indicate about Springs condition?

It seems that Spring has

sufficientinsufficientsufficient

current assets to meet its short-term obligations.