Question 1

For Questions 1 through 10, please use the Trial Balance from this question. Question 1: Calculate Current Assets for 2012

		DR/(CR)		DR/(CR)
		DECEMBER 31		DECEMBER 31,
		2012		2011
ACCOUNTS PAYABLE (none related to Inventory)		(5,500,000)		(4,000,000)
ACCOUNTS RECEIVABLE		5,000,000		3,000,000
ACCRUED LIABILITIES		(1,500,000)		(1,250,000)
ACCUMULATED AMORTIZATION		-		-
ACCUMULATED DEPRECIATION		(4,437,500)		(3,750,000)
ALLOWANCE FOR DOUBTFUL ACCOUNTS		(200,000)		(120,000)
AMORTIZATION EXPENSE		-
BAD DEBT EXPENSE		80,000
CASH		13,155,000		4,000,000
COMMON STOCK		(17,200,000)		(13,000,000)
COST OF GOODS SOLD		36,000,000
DEFERRED INCOME TAX LIABILITY		(500,000)		(500,000)
DEPRECIATION EXPENSE		1,812,500
EQUITY INVESTMENT INCOME		(160,000)
FIXED ASSETS		13,250,000		15,000,000
GAIN ON SALE OF ASSETS		(80,000)
GENERAL EXPENSES		2,000,000
INCOME FROM RENTAL PROPERTY		(100,000)
INCOME TAX EXPENSE		2,123,000
INCOME TAXES PAYABLE		(123,000)		(800,000)
INSURANCE EXPENSE		1,000,000
INTANGIBLES		12,000,000		12,000,000
INTEREST EXPENSE		1,140,000
INTEREST PAYABLE		-		-
INVENTORY		6,000,000		7,000,000
INVESTMENT IN NSC		1,120,000		1,000,000
LONG-TERM PORTION OF NOTES PAYABLE		(12,500,000)		(12,000,000)
OTHER ASSETS		350,000		250,000
PREPAIDS		600,000		400,000
RETAINED EARNINGS		(3,480,000)		(4,480,000)
SALES		(50,000,000)
SELLING EXPENSE		3,000,000
SHORT TERM PORTION OF NOTES PAYABLE		(2,250,000)		(2,250,000)
WAGES PAYABLE		(600,000)		(500,000)

24,555,000

46,837,000

18,155,000

Insufficient information

Question 2

Calculate current liabilities for 2012

22,973,000

9,973,000

7,723,000

Insufficient information

Question 3

Calculate total liabilities for 2012

9,973,000

22,973,000

13,000,000

46,837,500

Question 4

Calculate Net Equity for 2012

17,200,000

6,664,500

17,480,000

23,864,500

Question 5

Calculate the current ratio for 2012

2.66

2.46

2.36

3.25

Question 6

Calculate net working capital for 2011.

5,480,000

14,582,000

36,864,500

Insufficient information

Question 7

Calculate the change in total assets

10,275,000

8,057,500

1,173,000

Insufficient information

Question 8

Calculate total assets for 2012 and 2011

38,780,000 and 46,837,500

24,555,000 and 14,280,000

46,837,500 and 38,780,000

Insufficient information

Question 9

Calculate the retained earnings at the end of 2012

2,184,500

4,480,000

6,664,500

23,864,500

: Question 10

Calculate total debits for 2012.

Group of answer choices

98,630,500

108,630,500

46,837,500

Insufficient information