Questions 4 through 10 that follow are based on the following December 31, 20X6 year-end account balances for XYZ Co. after adjusting entries had been prepared but before the books were closed for the year.

Cash...358,960

Accounts receivable...724,500

Prepaid insurance.....25,900

Prepaid rent..48,000

Office supplies.15,600

Equipment..450,000

Accumulated depreciation: equipment...220,000

Land621,000

Accounts payable301,320

Dividends payable 45,000

Interest payable..15,000

Income tax payable....12,500

Unearned client service revenue....30,000

Notes payable (due December 20X9)..350,000

Common stock..845,000

Retained earnings.....303,200

Dividends....65,000

Client service revenue.......950,000

Travel expense.....35,500

Office supplies expense...22,000

Advertising expense.30,400

Salary expense....407,000

Utility expense......22,500

Depreciation expense: equipment.30,000

Interest expense.17,500

Insurance expense......22,500

Rent expense.75,000

Income tax expense 100,660

4. Prepare the adjusted trial balance on December 31, 20X6.

5. Prepare the income statement for the year ended December 31, 20X6.

6. Prepare the statement of retained earnings for the year ended December 31, 20X6.

7. Prepare the statement of financial position as of December 31, 20X6.

8. Determine the working capital on December 31, 20X6.

10. Determine the acid-test (quick) ratio on December 31, 20X6.