Question
. (TCO A) The following items are taken from the financial statements of PQR Company for 2013: Cash $100,000 Inventory 150,000 Accounts Payable 123,000 Accounts
. (TCO A) The following items are taken from the financial statements of PQR Company for 2013:
Cash | $100,000 |
Inventory | 150,000 |
Accounts Payable | 123,000 |
Accounts Receivable | 40,000 |
Supplies | 10,000 |
Salaries Payable | 30,000 |
Unearned Revenue | 75,000 |
Intangible assets | 78,000 |
Property, plant, and equipment, net | 156,000 |
Long term debt | 50,000 |
Common Stock | 25,000 |
Additional Paid in Capital | 175,000 |
Retained Earnings, 12/31/2012 | 13,000 |
Service revenue | 402,000 |
Cost of Goods Sold | 250,000 |
Rent expense | 48,000 |
Supplies expense | 25,000 |
Insurance expense | 36,000 |
Instructions:
(1) Create a classified balance sheet in good form for the year ended 2013. (30 points)
(2) Calculate the current ratio and debt ratio and explain your findings. (6 points) (Points : 36
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