Question
Use the following ratios to determine the missing balance sheet amounts as of December 31. Each formula must include at least one of the ratios.
| Use the following ratios to determine the missing balance sheet amounts as of December 31. Each formula must include at least one of the ratios. |
| |||||||||||
| The company's current ratio is: | 4.15 | |||||||||||
| The company's acid-test ratio is: | 2.77 | |||||||||||
| The company's debt to equity ratio is: | 0.38 | |||||||||||
| Richards Publishing Company | ||||||||||||
| Balance Sheet | ||||||||||||
| At December 31 | ||||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash | $60,000 | |||||||||||
| Short-term investments | 80,000 | |||||||||||
| Accounts receivable | ||||||||||||
| Other current assets | ||||||||||||
| Total current assets | ||||||||||||
| Property, plant, and equipment | ||||||||||||
| Equipment | 210,000 | |||||||||||
| Accumulated depreciation | 50,000 | |||||||||||
| Net property, plant, and equipment | 160,000 | |||||||||||
| Intangible assets | ||||||||||||
| Copyrights | 20,000 | |||||||||||
| Total assets | $180,000 | |||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | $60,000 | |||||||||||
| Interest payable | 5,000 | |||||||||||
| Total current liabilities | $65,000 | |||||||||||
| Long-term liabilities | ||||||||||||
| Notes payable (due in 3 years) | 60,000 | |||||||||||
| Total liabilities | ||||||||||||
| Shareholders' equity | ||||||||||||
| Common stock | 200,000 | |||||||||||
| Retained earnings | 125,000 | |||||||||||
| Total shareholders' equity | 325,000 | |||||||||||
| Total liabilities and shareholders' equity | $325,000 | |||||||||||
 | ||||||||||||
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Applying IFRS Standards
Authors: Ruth Picker, Kerry Clark, John Dunn, David Kolitz, Gilad Livne, Jance Loftus, Leo Van Der Tas
4th Edition
1119159229, 9781119159223
