Current Liabilities and Ratios
Several accounts that appeared on Atunlu's 2016 balance sheet are as follows:
|
Accounts Payable
|
$85,000
|
|
Equipment
|
$950,000
|
|
Marketable Securities
|
40,000
|
|
Taxes Payable
|
15,000
|
|
Accounts Receivable
|
153,000
|
|
Retained Earnings
|
250,000
|
|
Notes Payable, 12%, due in 60 days
|
20,000
|
|
Inventory
|
165,000
|
|
Capital Stock
|
1,150,000
|
|
Allowance for Doubtful Accounts
|
20,000
|
|
Salaries Payable
|
10,000
|
|
Land
|
600,000
|
|
Cash
|
65,000
|
|
|
Required:
1. Prepare the Current Liabilities section of Atunlu's 2016 balance sheet.
2. Compute Atunlu's working capital.
3. Compute Atunlu's current ratio. Round your answer to one decimal place.