The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is
ID: 2351946 • Letter: T
Question
The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below. Assets Liabilities and Equity Cash $ 78 Accounts payable $239 Accounts receivable (net) 188 Other liabilities 77 Notes receivable 62 Total current liabilities 316 Inventories 215 Long-term liabilities 90 Prepaid expenses 31 Total liabilities 406 Total current assets 574 Shareholders' equity: Plant assets (net) 262 Capital stock 132 Retained earnings 298 Total shareholders' equity 430 Total assets $836 Total liabilities and equity $836 Consider Notes receivable to be liquid assets. The acid-test ratio is (Round your answers to two decimal places.): 1.41. 0.33. 1.82. 1.04.Explanation / Answer
Total Assets = Plant & Equipment + Inventories + Net Accounts Receivable + Cash
= 6000000 + 100000 + 650000 + 210000 = $6960000
Total Liabilities = Accounts Payable + Other Current Liabilities + Accrued Expenses + Accumulated Depreciation + Long-Term Debt
= 130000 + 70000 + 100000 + 200000 + 5000000 = $5500000
Total Net Assets = Total Assets - Total Liabilities
= $6960000 - $5500000
= $1460000
Hence, answer is C : $1460000
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