Question
The following items are taken from the financial statements of PQR Company for 2012:
Cash
$250,000
Accounts Receivable
150,000
Prepaid Rent
120,000
Accounts Payable
168,000
Unearned Service Revenue
25,000
Equipment, net of accumulated depreciation
333,000
Common Stock
250,000
Retained Earnings 12/31/2011
41,000
Long-term debt
300,000
Service revenue
165,000
Cost of Goods Sold
50,000
Rent expense
24,000
Supplies expense
10,000
Insurance expense
12,000
Instructions:
(a) Please create a classified Balance Sheet in good form for the year ended 2012. (25 points)
(b) Please calculate the current ratio.
|
Cash |
$250,000 |
|
Accounts Receivable |
150,000 |
|
Prepaid Rent |
120,000 |
|
Accounts Payable |
168,000 |
|
Unearned Service Revenue |
25,000 |
|
Equipment, net of accumulated depreciation |
333,000 |
|
Common Stock |
250,000 |
|
Retained Earnings 12/31/2011 |
41,000 |
|
Long-term debt |
300,000 |
|
Service revenue |
165,000 |
|
Cost of Goods Sold |
50,000 |
|
Rent expense |
24,000 |
|
Supplies expense |
10,000 |
|
Insurance expense |
12,000 |
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