Question one

1. ABC Company reported Current Assets of $850,000 and Current Liabilities of $620,000. Calculate working capital and explain the results.
2. Medis Corporation has $11 million in total assets. It has $3.7 million in current liabilities, $2.1 million in long term debt, and $1.7 million in preferred stock. What is the total value of ordinary equity?
3. A firm had retained earnings balance of $6 million in the previous year. In the current year, its net income is $5 million. If it pays $1.7 million in ordinary dividends in the current year, what is the resulting earnings balance?