. Advertisement .
..3..
. Advertisement .
..4..
1/The following partial balance sheet ($ in thousands) for Paisano Seafood Inc is shown below.
| Assets | Liabilities and Equity | ||||||
| Current assets: | Current liabilities: | ||||||
| Cash | $ | 75 | Accounts payable | $ | 232 | ||
| Accounts receivable (net) | 186 | Other liabilities | 72 | ||||
| Notes receivable | 57 | Total current liabilities | 304 | ||||
| Inventories | 212 | Long-term liabilities | 103 | ||||
| Prepaid expenses | 41 | Total liabilities | 407 | ||||
| Total current assets | 571 | Shareholders’ equity: | |||||
| Plant assets (net) | 267 | Capital stock | 130 | ||||
| Retained earnings | 301 | ||||||
| Total shareholders’ equity | 431 | ||||||
| Total assets | $ | 838 | Total liabilities and equity | $ | 838 | ||
The current ratio is (Round your answer to two decimal places.):
Multiple Choice
-
2.14.
-
1.88.
-
0.68.
-
1.40.
2/ Janson Corporation Co.’s trial balance included the following account balances at December 31, 2018:
| Accounts receivable | $13,100 |
| Inventories | 42,000 |
| Patent | 13,500 |
| Investments | 31,500 |
| Prepaid insurance | 7,400 |
| Note receivable, due 2021 | 50,900 |
Investments consist of treasury bills that were purchased in November, 2018 and mature in January, 2019. Prepaid insurance is for two years. What amount should be included in the current asset section of Janson’s December 31, 2018, balance sheet?
Multiple Choice
-
$ 94,000.
-
$ 58,800.
-
$ 90,300.
-
$ 141,200
3/ Recent financial statement data for Harmony Health Foods (HHF) Inc. is shown below.
| Current liabilities | $ | 180 | Income before interest and taxes | $ | 125 | |
| 10% Bonds, long-term | 350 | Interest expense | 35 | |||
| Total liabilities | 530 | Income before tax | 90 | |||
| Shareholders’ equity | Income tax | 26 | ||||
| Capital stock | 220 | Net income | $ | 64 | ||
| Retained earnings | 283 | |||||
| Total shareholders’ equity | 503 | |||||
| Total liabilities and equity | $ | 1,033 | ||||
HHF’s long-term debt to equity ratio equity is:
Multiple Choice
-
143.7%.
-
0.0%.
-
159.1%.
-
69.6%.
Assets are the future financial resources of a business. Assets are listed on the balance sheet of a company and are usually classified as non-current or current based on the date they are expected to be converted into cash or used.
1 Answer