Question
The following is a December 31, 2021, post-closing trial balance for Culver City Lighting, Inc. Account Title Debits Credits Cash $ 69,000 Accounts receivable 53,000
The following is a December 31, 2021, post-closing trial balance for Culver City Lighting, Inc.
| Account Title | Debits | Credits | ||||
| Cash | $ | 69,000 | ||||
| Accounts receivable | 53,000 | |||||
| Inventory | 59,000 | |||||
| Prepaid insurance | 29,000 | |||||
| Equipment | 130,000 | |||||
| Accumulated depreciation | $ | 48,000 | ||||
| Patent (net) | 54,000 | |||||
| Accounts payable | 19,000 | |||||
| Interest payable | 9,000 | |||||
| Notes payable (due in 10 years) | 150,000 | |||||
| Common stock | 84,000 | |||||
| Retained earnings | 84,000 | |||||
| Totals | $ | 394,000 | $ | 394,000 | ||
| | ||||||
a. Calculate the current ratio.
b. Calculate the acid-test ratio.
c. Calculate the debt to equity ratio.
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
