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The balance sheet of JKL Corp. as of December 31, 2023, presents the following account balances: Assets : Cash and Cash Equivalents: $550,000 Accounts Receivable:

  • The balance sheet of JKL Corp. as of December 31, 2023, presents the following account balances:
    • Assets:
      • Cash and Cash Equivalents: $550,000
      • Accounts Receivable: $320,000
      • Inventory: $420,000
      • Prepaid Expenses: $60,000
      • Property, Plant, and Equipment: $1,000,000
      • Accumulated Depreciation: ($180,000)
      • Goodwill: $180,000
    • Liabilities and Equity:
      • Accounts Payable: $200,000
      • Accrued Liabilities: $80,000
      • Short-term Borrowings: $150,000
      • Long-term Debt: $800,000
      • Common Stock: $550,000
      • Retained Earnings: $600,000
    • Total Liabilities and Equity: $2,410,000
    • Total Assets: $2,810,000
  • a. Calculate the Total Current Assets and explain their importance in assessing liquidity.
  • b. Determine the Total Equity and discuss its implications for shareholder value.
c. Compute the Debt-to-Asset Ratio and analyze its significance in evaluating financial risk.

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