Posted: July 19th, 2016

What did Winrow Company show as total credits on its trial balance?

Using the following balance sheet and income statement data, what is the current ratio?
Current assets $14,000 Net income $24,000
Current liabilities 8,000 Stockholders’ equity 42,000
Average assets 80,000 Total liabilities 18,000
Total assets 60,000
Average common shares outstanding was 10,000.

Answer:
1.75 : 1
1.6 : 1
0.57 : 1
3.3 : 1

Use the following data to calculate the current ratio.

Eddy Auto Supplies
Balance Sheet
December 31, 2012
Cash $50,000 Accounts Payable $55,000
Prepaid Insurance 30,000 Salaries Payable 10,000
Accounts Receivable 40,000 Mortgage Payable 90,000
Inventory 70,000 Total Liabilities $155,000
Land held for Investment 80,000
Land 75,000
Buildings $110,000 Common Stock $120,000
Less Accumulated Retained Earnings 250,000
Depreciation (20,000) 90,000 Total Stockholders’ Equity $370,000
Trademarks 70,000 Total Liabilities and
Total Assets $525,000 Stockholders’ Equity $525,000

Answer:
1.85 : 1.
2.92 : 1.
3.45 : 1.
1.38 : 1.

Winrow Company showed the following balances at the end of its first year: What did Winrow Company show as total credits on its trial balance?