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please help with b) and c) Thankyou Question 9 (33 marks) The following items are taken from the adjusted trial balance of Sutch Video Productions
please help with b) and c)
Thankyou
Question 9 (33 marks) The following items are taken from the adjusted trial balance of Sutch Video Productions at December 31, 2017 Accounts Payable Accounts Receivable Accumulated Depreciation-Video Equipment 28,000 Advertising Expense S 15,000 1,000 Depreciation Expense J. Sutch, capital J. Sutch, drawings Insurance Expense Note Payable (due December 31, 2019) Prepaid Insurance.. Rent Expense Salaries Expense Salaries Payable Service Revenue 21,000 24,000 12,000 102,000 15,000 3,000 0,000 6,000 17,000 34,000 3,000 145,000 4,000 6,000 210,000 Supplies Expense Video Equipment a) Calculate the profit (5 Marks) b) Calculate the balance of Owner's Equity that would appear on a balance sheet at December 31, 2017. (5 Marks) c) Prepare a classified balance sheet for Sutch Video Productions at December 31 2017. (15 Marks) d) Calculate the working capital and the current ratio. Which of the two measures is preferable for comparing Sutch's liquidity with competitors7 (5 Marks) e) Calculate the acid-test ratio for the company. What could the company do to improve this ratioStep by Step Solution
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