Instructions Balance Sheet Several accounts that appeared on Kruse's December 31, 2016 balance sheet are as follows: 1. Prepare the Current Liabilities section of Kruse's 2016 balance sheet. Balance Sheet Instructions Accounts Payable $55,000 Equipment $950,000 Marketable Securities 40,000 Taxes Payable 15,000 Accounts Receivable 180,000 Retained Earnings 250,000 Notes Payable 20,000 Inventory 85,000 Capital Stock 1,150,000 Allowance for Doubtful Accounts 20,000 Salaries Payable 10,000 600,000 Cash 15,000 Land Kruse Balance Sheet (Label) "Notes Payable, 12%, due in 60 days 1 Label) 2 3 4 Required: 1. Prepare the Current Liabilities section of Kruse's 2016 balance sheet. 2. Compute Kruse's working capital. 3. Compute Kruse's current ratio. What does this ratio indicate about Kruse's condition? Chart of Accounts Labels and Amount Des 5 6 Final Questions REVENUE 411 Sales Revenue 2. Compute Kruse's working capital. ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 154 Supplies 174 Equipment 179 Accumulated Depreciation Working Capital - $ Labels Current assets Current liabilities December 31, 2016 For the Year Ended December 31, 2016 Amount Descriptions Total current assets Total current liabilities 3. Compute Kruse's current ratio. What does this ratio indicate about Kruse's condition? Current Ratio = :1 EXPENSES 500 Cost of Goods Sold 521 Salaries and Wages Expense 532 Utilities Expense 533 Insurance Expense 534 Rent Expense 537 Supplies Expense 541 Depreciation Expense 551 Advertising Expense 559 Miscellaneous Expenses 810 Interest Expense 910 Income Tax Expense LIABILITIES 211 Accounts Payable 231 Salaries Payable 235 Notes Payable 261 Taxes Payable It seems that Kruse has Authoring Information current assets to meet its short-term obligations. EQUITY 311 Capital Stock 331 Retained Earnings