QUESTION 6 15 POINTS 25 MINUTES

The following are, in alphabetical order, certain accounts taken from George Inc.'s trial balance as at December 31, 2016. All amounts are in Canadian dollars.

Building depreciation $ 2,000 Office supplies used $ 2,000 Accumulated amortization - building 10,000 Interest costs 800 Building 50,000 Social Capital 100,000 Retained earnings 48,000 Fees for services rendered 120,000 Customers 35,000 Fees received in advance 10,000 Advertising 30,000 Rent 4,500 Bank loan (3 years) 60,000 Salaries 35,000 Cash 10,000 Salaries payable 2,500 Suppliers 500 Land 130,000 Office supplies 6,000 Transport costs 3,000

Work to do

1. Complete a proper statement of financial position (balance sheet) for George Inc. for the year ended December 31, 2016. Please note that some accounts are accounts should not appear in the statement of financial position (balance sheet). 2. Calculate the working capital ratio and explain what the result suggests to you.