UVW Corp. shows the following balances:

• Cash: $15,000
• Accounts Receivable: $28,000
• Inventory: $35,000
• Prepaid Expenses: $3,500
• Accounts Payable: $12,000
• Short-term Debt: $18,000
• Office Equipment: $85,000
• Accumulated Depreciation: $20,000
• Common Stock: $50,000
• Retained Earnings: $67,500

Requirements:

1. Prepare the adjusted trial balance.
2. Calculate the working capital and current ratio.
3. Journalize the following adjustments:
   • Depreciation expense: $3,000
   • Allowance for doubtful accounts: $700
4. Prepare an income statement.
5. Analyze the significance of accounts receivable in liquidity management.