PRINTER VERSION Question 1 An alphabetical list of Sandhills Company's adjusted accounts at its fiscal year end, August 31, 2017, follows. All accounts have normal balances Accounts payable $15,550 Notes payable $42,000 Accumulated depreciation--equipment 14,000 Prepaid Insurance 575 Accumulated depreciation-furniture 17,500 R. Smistad, capital 65,750 Cash 18,490 R. Smistad, drawings 80,000 Cost of goods sold 271,800 Rent expense 24,900 Depreciation expense 7,080 Salaries expense 50,800 Equipment 35,000 Salaries payable 2,250 Furniture 42,900 Sales 472,000 Insurance expense 3,575 Sales returns and allowances 16,300 Interest expense 2,170 Supplies 950 Interest payable 565 Supplies expense 6,325 Merchandise inventory 71,350 Unearned revenue 2,600 Additional information: 1. Of the notes payable, $6,100 becomes due on February 17, 2018. The balance is due in 2019. 2. On July 18, 2017, R. Smistad invested $3,800 cash in the business. Exercise 8-14 The following information in millions) was taken from the December 31 financial statements of 2014 2013 2012 $822 Accounts receivable, gross Allowance for doubtful accounts Accounts receivable, net $937 9 $841 7 10 928 815 831 Revenues Total current assets Total current liabilities 12,134 2,066 2,201 10,575 1,977 2,498 9,920 1,869 2,203 Calculate the 2014 and 2013 current ratios. (Round answers to 2 decimal places, e.g. 52.75.) 2014 2013 Current Ratio Exercise 8-14 The following information in millions) was taken from the December 31 financial statements of 2014 2013 2012 $822 Accounts receivable, gross Allowance for doubtful accounts Accounts receivable, net Revenues $937 9 $841 7 10 815 831 Total current assets 928 12,134 2,066 2,201 10,575 1,977 2,498 9,920 1,869 2,203 Total current liabilities Calculate the 2014 and 2013 current ratios. (Round answers to 2 decimal places, e.g. 52.75.) 2014 2013 Current Ratio