The following balance sheet data are reported for Brownlee Catering at September 30, 2015

Accounts receivable ... $17,000

Notes payable ... $12,000

Equipment ... $34,000

Supplies Inventory ... $9,000

Accounts payable $24,000

Cash ... $10,000

Common Stock ... $27,500

Retained earnings ... ?

Assume that on October 1, 2015, only the two following transactions occurred:

October 1 - Purchased additional equipment costing $11,000 , giving $3,000 cash and signing an $8,000 note payable

Declared and paid a cash dividend of $3,000

__________

a. Prepare Brownlee Caterings balance sheet at September 30, 2015

b. Prepare the companys balance sheet at the close of the business on October 1, 2015

c. Calculate Brownlees current and quick ratios on September 30 and October 1 (assume notes payable are non current).

d. The October 1, 2015 transactions have decreased Brownlees current and quick ratios, reflecting a decline in liquidity. Identify two transactions that would increase the companys liquidity