The following accounts and balances are from the general ledger of Swan Company.
ID: 2471204 • Letter: T
Question
The following accounts and balances are from the general ledger of Swan Company.
Accounts Payable. $ 49,800
Accounts Receivable. 30,600
Cash. 4,500
Current Portion of. 30,000
Long Term Debt
Long Term Investments. 31,200
Marketable Securities. 37,800
Merchandise Inventory. 76,200
Notes payable, 90 days. 45,000
Notes payable, 2 years. 60,000
Notes receivable,90 days. 78,000
Notes receivable,2 years. 30,000
Prepaid Insurance. 1,200
Property, Plant, and Equipment. 180,000
C.Swan,Capital. 84,900
Salaries Payable. 2,550
Supplies. 1,050
Property Taxes Payable. 3,750
Unearned Revenue. 2,250
Compute the Working capital and the current ratio
Explanation / Answer
Statement showing computations Particulars Amount Current Assets: Accounts Receivable 30,600.00 Cash 4,500.00 Marketable Securities 37,800.00 Merchandise Inventory 76,200.00 Notes Receivable 78,000.00 Prepaid Insurance 1,200.00 Supplies 1,050.00 Total Current Assets 229,350.00 Current Liabilities Accounts Payable 49,800.00 Current Portion of LTD 30,000.00 Notes Payable 45,000.00 Salaries Payable 2,550.00 Property Taxes Payable 3,750.00 Unearned Revenues 2,250.00 Total Current Liabilities 133,350.00 Current Ratio = CA-CL = 229,350 - 133,350 96,000.00 Working Capital = CA/CL = 229,350/ 133,350 1.72