Question

You are provided with the following information for Coronado Industries, effective as of its April 30, 2017 year-end. Accounts payable Accounts receivable Accumulated depreciation-equipment Cash Common stock Cost of goods sold Depreciation expense Dividends Equipment Income tax expense Income taxes payable Insurance expense Interest expense Inventory Land Mortgage payable Notes payable Prepaid insurance Retained earnings (beginning) Salaries and wages expense Salaries and wages payable Sales revenue Stock investments (short-term) $894 960 670 1.420 1,350 1,120 275 385 2,570 225 195 270 460 1,117 3,250 3,650 211 120 1,600 640 282 5,250 1.290

Answer 1

Liquid Assets are those assets that can be easily converted into cash in a short period of time.Liquid assets includes cash and cash equivalents that can be readily converted into cash(marketable securities ,

accounts receivable )

Currents Assets in terms of liquidity is a way of presenting assets in terms of time it usually take to convert them into cash.Cash is the most liquid asset followed by marketable securitiees and accounts receivable.

1,420 1,290 960 1,117 120 4,907 3,250 1.900 Coronado Industries: Balance Sheet Assets Current Assets: Cash Stock investments(short term) Accounts Receivable Inventory Prepaid Insurance Total Current Assets Non-Current Assets: Land Equipment 2,570 Accumulated Deprication -670 Total non-current assets Total Assets Liabilities and Stocholder's Equity Current liabilities: Accounts Payable Income tax payable Notes payable Salaries and wages payable Total current liabilities Non-Current liabilities: Mortgage Payable Total Liabilities: Shareholder's equity: Common Stock Retained Earnings(notes) Total Shareholder's Equity Total liabilities and Shareholder's Equity 5,150 10,057 894 195 211 282 1,582 3,650 5,232 1,350 3,475 4,825 10,057

5,250 1.120 4,130 Notes: Income Statement Sales Less:Cost of Goods Sold Gross Profit Operating Expenses: Deprication Expense Insurance Expense Salaries and Wages Expene Operating Income Less:Interest Expense Operating Income before tax Less:Income tax Expense Net Income 275 270 640 1.185 2,945 460 2,485 225 2,260 Statement of Retained Earnings Retained Earnings (beginning) Add:Net Profit Less:Dividends Retained Earnings (Ending) 1,600 2,260 385 3,475