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The balance sheet of Kapinski Inc. includes the following items:

The balance sheet of Kapinski Inc. includes the following items: Required 1. Determine the current ratio and

Question:

The balance sheet of Kapinski Inc. includes the following items:

Required
1. Determine the current ratio and working capital.
2. Kapinski appears to have a positive current ratio and a large net working capital. Why would it have trouble paying bills as they come due?
3. Suggest three things that Kapinski can do to help pay its bills ontime.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

Transcribed Image Text:

Cash Accounts receivable Inventory Prepaid insurance Land $ 84,900 3,200 100,000 35,700 $23,000 Accounts payable 43,000 Salaries payable 75,000 Capital stock 2,800 Retained earnings 80,000

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1 Current Ratio Current AssetsCurrent Liabilities 23000 43000 75000 280084900 3200 14380088...View the full answer

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Question Posted: Jan 12, 2012 02:08 AM

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