Lesson Content - H320 HSA31 X ops/blackboard/content/listContent.jsp?course id=70975 1&content id-6462129 1 the liabilities with its current assets A mistake commonly made by students is to use the Total Assets and/or Total Liabilities in the equation Doing this would cause a wrong an sure to find the correct datal Take a few moments to review the following balance sheet of ABC Healthcare Use this information to calculate the current ratio for the orga Please note that in financial reporting, the total current assets and current liabilities will be listed. Question #1: Following are balance sheet accounts for ABC Healthcare. Their Current Assets are as follows: Cash and equivalents = $600,000, Plant and Equipment = $1,200,000 Their Current Liabilities are as follows: Accounts payable = $300,000 Longterm debt = $300,000 Use this information to calculate the organization's Current Ratio A60 B 40 C 2.0 D: 20 Answer Next The Balance Shant o fi 9 Depreciation Depreciation is how companies allocate the cost of an asset (such as machinery) over the life of the asset. There are rules set and timeframe for the deductions that companies must follow. This allows them to adjust down the book value of their equipmen which provides a more realistic taxable value. To simply the concept, this course will focus on straight-line depreciation. Question #1: A clinic bought a new MRI machine for $1,000,000. They determined that it will depreciate $200,000 a year and it has a useful life expectancy of 5 years. How much will its book value be in 2 years? A 51.000.000 B: 51.400.000 C. 5000.000 D 50 Answer Next Amortization O RI 5 6 3