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Credits $ Debits 20,000 130,000 24,000 100,000 3,000 ook $ 5,000 int 32,900 50,000 1,300,000 620,000 ences Account Title Cash Accounts receivable Raw materials Note receivable Interest receivable Interest payable Marketable securities Land Buildings Accumulated depreciation-buildings Work in process Finished goods Equipment Accumulated depreciation-equipment Patent (net of amortization) Prepaid rent (for the next two years) Deferred revenue Accounts payable Note payable Cash restricted for payment of note payable Allowance for uncollectible accounts Sales revenue Cost of goods sold Rent expense 42,000 89,000 300,000 130,000 120,000 60,000 36,000 180,000 400,000 80,000 13,000 800,000 450,000 28,000 80,099 Cash restricted for payment of note payable Allowance for uncollectible accounts Sales revenue Cost of goods sold Rent expense 13,990 800,000 450,000 28,000 Book Additional information: ences 1 The note receivable, along with any accrued interest, is due on November 22, 2019. 2 The note payable is due in 2022. Interest is payable annually. 3. The marketable securities consist of treasury bills, all of which mature in the next year. 4. Deferred revenue will be recognized as revenue equally over the next two years. Required: Determine the company's working capital (current assets minus current liabilities) at December 31, 2018 should be indicated by a minus sign.) Current assets Exercise 3-20 Effect of management decisions on ratios [LO3-8] Most decisions made by management impact the ratios analysts use to evaluate performance Indicate (by letter) whether each actions listed below will immediately increase (1), decrease (D), or have no effect (N) on the ratios shown. Assume each ratio is le than 10 before the action is taken. Debt to Current Ratio Acid-Test Ratio Equity Ratio Action 1. Issuance of long-term bonds 2. Issuance of short-term notes 3. Payment of accounts payable 4. Purchase of inventory on account 5. Purchase of inventory for cash 6. Purchase of equipment with a 4-year note 7. Retirement of bonds 8. Sale of common stock 9. Write-off of obsolete inventory 10 Purchase of short-term investment for cash 11 Decision to refinance on a long-term basis some currently maturing debt Presented below is a list of balance sheet accounts. Accounts payable Accounts receivable Accumulated depreciation-buildings Accumulated depreciation equipment Allowance for uncollectible accounts Bonds payable (due in 10 years) Buildings Land (in use) Long-term investments Notes payable (due in 6 months) Notes receivable (due in 2 years) Patent Preferred stock Prepaid expenses Rent payable (current) Restricted cash (to be used in 1e year Retained earnings Short-term investments Taxes payable Wages payable Common stock Copyright Equipment Interest receivable (due in three months) Inventories Required: Prepare a classified balance sheet ignoring monetary amounts. (Enter the answer in the