Use the following information to answer these questions:

1 How much working capital does XYZ Company have at 12/31/2018? 2 What is XYZ's current ratio? 3 Was XYZ's bonds issued at a premium or a discount? 4 How much was in the allowance for doubtful accounts before the $22,900 bad debt adjusting entry? 5 What is the gross profit ratio percentage? 6 What is the Debt to Total Asset Ratio? 7 How much is in the mortgage payable general ledger account at 12/31/2018? 8 Is XYZ a service or merchandising company? 9 What is the depreciation on XYZ's Land? 10 What is the net book value of XYZ's Property, Plant and Equipment? 11 Name 5 accounts that could have had adjusting entries made at 12/31/2018? XYZ Company, Inc. Income Statement For the Year Ended December 31, 2018 Sales $ 2,150,000 Sales revenue Less: Sales returns and allowances $26,800 17,500 Sales discounts Net sales Cost of goods sold Gross profit 44,300 2,105,700 1,050,000 1,055,700 Operating expenses Salaries and wages expense Depreciation expense Advertising expense Utilities expense Bad debt expense Supplies expense Freight-out 352,000 186,000 34,000 12,800 22,900 15,600 7,500 Total operating expenses 630,800 424,900 Income from operations Other revenues and gains Interest revenue Gain on sale of equipment 10,800 45,000 55,800 Other expenses and losses Interest expense Loss on sale of building 46,900 52,000 98,900 $381,800 Net income XYZ Company, Inc. Retained Earnings Statement For the Year Ended December 31, 2018 $269,700 381,800 651,500 (220,200) $ 431,300 Retained earnings, January 1 Add: Net income Less: Dividends Retained earnings, December 31 XYZ Company, Inc. Balance Sheet December 31, 2018 Assets Current assets 152,600 Cash Accounts receivable Less: Allowance for doubtful accounts Merchandise inventory Supplies Prepaid insurance 199,000 (38,200) 160,800 116,200 12,500 28,600 470,700 Total current assets Property, plant, and equipment Land Building Less: Accumulated depreciation-building Equipment Less: Accumulated depreciation-equipment 1,000,000 780,000 (340,000) 440,000 687,500 (186,000 501,500 1,941,500 Total assets $2,412,200 Current liabilities Notes payable (line of credit) Accounts payable Unearned revenue Salaries and wages payable Current Maturities of Long Term Mortgages 168,000 88,900 29,600 19,200 10,200 Total current liabilities 315,900 Long-term liabilities Mortgage payable Bonds Payable Less: Discount on Bonds Payable 480,000 600,000 15,000 585,000 1,065,000 1,380,900 Total Long-term Liaiblities Total liabilities Stockholders' equity Common stock 600,000 431,300 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 1,031,300 2,412,200 1 How much working capital does XYZ Company have at 12/31/2018? 2 What is XYZ's current ratio? 3 Was XYZ's bonds issued at a premium or a discount? 4 How much was in the allowance for doubtful accounts before the $22,900 bad debt adjusting entry? 5 What is the gross profit ratio percentage? 6 What is the Debt to Total Asset Ratio? 7 How much is in the mortgage payable general ledger account at 12/31/2018? 8 Is XYZ a service or merchandising company? 9 What is the depreciation on XYZ's Land? 10 What is the net book value of XYZ's Property, Plant and Equipment? 11 Name 5 accounts that could have had adjusting entries made at 12/31/2018? XYZ Company, Inc. Income Statement For the Year Ended December 31, 2018 Sales $ 2,150,000 Sales revenue Less: Sales returns and allowances $26,800 17,500 Sales discounts Net sales Cost of goods sold Gross profit 44,300 2,105,700 1,050,000 1,055,700 Operating expenses Salaries and wages expense Depreciation expense Advertising expense Utilities expense Bad debt expense Supplies expense Freight-out 352,000 186,000 34,000 12,800 22,900 15,600 7,500 Total operating expenses 630,800 424,900 Income from operations Other revenues and gains Interest revenue Gain on sale of equipment 10,800 45,000 55,800 Other expenses and losses Interest expense Loss on sale of building 46,900 52,000 98,900 $381,800 Net income XYZ Company, Inc. Retained Earnings Statement For the Year Ended December 31, 2018 $269,700 381,800 651,500 (220,200) $ 431,300 Retained earnings, January 1 Add: Net income Less: Dividends Retained earnings, December 31 XYZ Company, Inc. Balance Sheet December 31, 2018 Assets Current assets 152,600 Cash Accounts receivable Less: Allowance for doubtful accounts Merchandise inventory Supplies Prepaid insurance 199,000 (38,200) 160,800 116,200 12,500 28,600 470,700 Total current assets Property, plant, and equipment Land Building Less: Accumulated depreciation-building Equipment Less: Accumulated depreciation-equipment 1,000,000 780,000 (340,000) 440,000 687,500 (186,000 501,500 1,941,500 Total assets $2,412,200 Current liabilities Notes payable (line of credit) Accounts payable Unearned revenue Salaries and wages payable Current Maturities of Long Term Mortgages 168,000 88,900 29,600 19,200 10,200 Total current liabilities 315,900 Long-term liabilities Mortgage payable Bonds Payable Less: Discount on Bonds Payable 480,000 600,000 15,000 585,000 1,065,000 1,380,900 Total Long-term Liaiblities Total liabilities Stockholders' equity Common stock 600,000 431,300 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 1,031,300 2,412,200