Question #1 Classify (by putting an "X" in the appropriate column) the followig assets and liabilities for your company as either current (i.e. Short-term) or non-current [i.e. Long-term). Note that in some cases, a portion may be current with the balance as non-current. In such a case add "X"s in both of the appropriate columns Assets Liabilities Ourrent Non-CurrentCurrent Non-Current Example: Your company makes a prepayment of $800 for a six-month insurance policy. a) Your company has taken out a loan from a bank, requiring monthly payments on the principal over two years. b) Your company owns an automobile which is used by one of the salespersons to make sales calls to your customers. c) Your company has just completed the manufacture of a new model widget that you hope to sell to your customers shortly. d) Your company signed a lease with one of your customers, requiring the customer to pay $7400 per month for 36 months. e) Your company purchased a patent from an individual inventor to use in a new product it plans to sell f Your company has vacation wages payable within the next year as your employees have accrued vacation at the rate of one day per montl Question #2 For each of the following, choose from the table on the right with an "X" in the column) the most appropriate valuation method in order to quantify a financial transaction value. Cost paid Cost paid less depreciation Market value Net Present Value a) A department store has an inventory of men's shirts acquired 6 months ago. b) An automobile mfg company owns a 7-year-old machine tool used to fabricate parts. c A three year old automobile used by one of the company's salespersons d) A local bank carries on its books a car loan payback commitment from a customer el A resturaunt takes an end-of-year inventory of their wine collection for insurance purposes Question #3: Which of the following produces a change in Retained Earnings? Answer Yes or No; If Yes, Specify Increase o Decrease al Production equipment was purchased with cash for $25,000. b) $5000 of inventory was received from suppliers on account. c) Salaries for the month totaling $4000 were paid out of cash. Yes No ? Yes No? Yes No? Increase/Decrease? Increase/Decrease? Increase/Decrease