Question

The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation Cash and cash equivalents Accounts receivable (net) Inventory Property, plant, and equipment (net) Accounts payable Salaries payable Paid-in capital $ 7,000 40,000 80,000 220,000 59,000 20,000 200,000 The only asset not listed is short-term investments. The only liabilities not listed are $50,000 notes payable due in two years related accrued interest of $1,000 due in four months. The current ratio at year-end is 1.7.1. Required: Determine the following at December 31, 2021 1 Total current assets 2. Short-term investments 3. Retained earnings

Answer 1

If you like my explanation, please give a "thumbs up"

Final answers are marked in yellow.

A B C E F 1 Amount 59000 2 2. 3 4 Current liabilities Accounts payable Salaries payable Accrued Interest Current liabilities 20000 1000 80000 6 7 8 Current ratio = current assets/ current liabilities Total current assets = current ratio * current liabilities Current ratio 1.7 Total current assets 136000 9 10 11 12 13 short term investments - Current assets - Cash - Accounts receivables - Inventory Short term investments = 136000-7000-40000-80000 Short term investments 9000 14 15 16 Balance Sheet 17 Assets Amount Liabilities and Equity Amount 18 Current Assets Current Liabilities 19 Cash and Cash Equivalents 7000 Accounts payable 59000 20 Accounts receivables 40000 Salaries Payable 20000 21 Inventory 80000 Accured interest 1000 22 Short term investments 9000 23 Shareholder's Equity 24 Non-Current Assets equity 2000001 25 Property plant and equipment 220000 Retained Earnings 76000 26 Total 356000 Total 356000 H” Sheet136 Sheet137 Sheet138 Sheet140 Sheet139 Sheet141 Sheet142 Ready

For calculation ref:

B с D E F 1 Amount 59000 2 A Current liabilities Accounts payable Salaries payable Accrued Interest Current liabilities 3 20000 4 1000 5 =SUM(C2:04) 6 7 8 Current ratio = current assets/ current liabilities Total current assets = current ratio * current liabilities Current ratio Total current assets 9 1.7 10 =C9*C5 11 12 13 short term investments = Current assets - Cash - Accounts receivables - Inventory Short term investments = 136000-7000-40000-80000 Short term investments 14 136000-7000-40000-80000 15 16 Balance Sheet 17 Assets Amount Amount 18 19 Current Assets Cash and Cash Equivalents Accounts receivables Inventory Short term investments 20 Liabilities and Equity Current Liabilities Accounts payable 59000 Salaries Payable 20000 Accured interest 1000 7000 40000 80000 21 22 =C14 23 24 Shareholder's Equity equity 200000 Retained Earnings =C26-E24-E19-E20-E21 Total =SUM(E19:E25) Non-Current Assets Property plant and equipment Total 25 220000 I=SUM(C19:C25) 26 27 Sheet136 Sheet137 Sheet138 Sheet140 Sheet139 Sheet141 Sheet142 Stats Ready HA OU 100%