Question

The current asset section of Guardian Consultant's balance sheet consists of cash, accounts receivable, and prepaid expenses. The 2021 balance sheet reported the following: cash, $1.410,000: prepaid expenses. $470.000, long term assets, $3,500,000; and shareholders' equity, $3,600,000. The current ratio at the end of the year was 2.0 and the debt to equity ratio was 1.5. Required: Determine the following 2021 amounts and ratios: (Round your "The acid-test ratio" answer to 1 decimal place.) 1. Current liabilities 2. Long-term liabilities 3. Accounts receivable 4. The acid-test ratio

Answer 1

1. Current Liabilities - Sve 2750000 265oooo 2. Long-term Liabilities - 3. Accounts Receivable 362oooo 1.8 4. The Acid - test Ratio

working Notes! - Total Liabilities Dest to equity Rato = Shame holder's equity Share holden's equity = $3600.000 best to equity Ratio 1-5 Tabattabiliter Total hiabilities 1.5 3600 ovo Total liabilities - 3660oo0 x 1.5 $ 54 00 000 Total assets Total Liabilities & Shane holder's Lunel 5400 000 + 3600 000 9000000 Total assets - Long term Assets Canapht Assets 9000000 - 3500ooo $ 5500000

Current Assets Ratio Current Assets currerent Liabilities 55ooooo 2 Current brasilities SS DO OVO (coment liabilities 2 -$2750000 Current Liabilities Long term Leabilities - Total Liabilities 5400000 275oooo sono $ 2650000 Accounts Receivales - Total Cunarent Asset - cash- prepaid expense 550oooo 1410000 - 470000 362oooo Current assets inventories- Prepayments Acid- test ratio Current Liabilities 55ooooo 4 7oooo 275o ovo 1.8