Need to convert to Balance Sheet and need the Current Ratio Ruth Corporation Dec
ID: 2355008 • Letter: N
Question
Need to convert to Balance Sheet and need the Current Ratio Ruth Corporation December 31, 2010 accounts payable 18,255 accounts recievable 23, 450 accumulated depreciation automobiles 22,500 accumulated depreciation buildings 40,000 automobiles 112,500 bonds payable, due Dec 31 2014 160,000 buildings 200,000 capital stock, $10 per value 150,000 cash 13,230 income taxes payable 6,200 interest payable 1,500 inventory 45,730 land 250,000 long-term investments 85,000 notes payable, due June 30 2011 10,000 office supplies 2,340 paid-in capital in excess of par value 50,000 patents 40,000 prepaid rent 1,500 retained earnings 311,095 salaries and wages payable 4,200Explanation / Answer
RUTH CORPORATION
BALANCE SHEET
DECEMBER 31, 2010
Assets
Current assets:
Cash $ 13,230
Accounts receivable 23,450
Inventory 45,730
Prepaid rent 1,500
Office supplies 2,340
Total current assets $ 86,250
Long-term investments 85,000
Property, plant, and equipment:
Land 250,000
Automobiles $ 112,500
Less: Accumulated
depreciation 22,500 90,000
Buildings 200,000
Less: Accumulated
depreciation 40,000 160,000
Total property, plant, and
equipment 500,000
Intangible assets:
Patents 40,000
Total assets $ 711,250
Liabilities
Current liabilities:
Accounts payable $ 18,255
Income taxes payable 6,200
Interest payable 1,500
Notes payable, due June 30, 2002 10,000
Salaries and wages payable 4,200
Total current liabilities $ 40,155
Long-term debt:
Bonds payable, due December 31,
2005 160,000
Total liabilities $ 200,155
Stockholders' Equity
Contributed capital:
Capital stock, $10 par value,
15,000 shares issued and
outstanding $ 150,000
Paid-in capital in excess of par
value 50,000
Total contributed capital 200,000
Retained earnings 311,095
Total stockholders' equity 511,095
Total liabilities and stockholders'
equity $ 711,250
====================
2. Current ratio = Current assets/Current liabilities
$86,250/$40,155 = 2.15 to 1
------------------------------------------------------
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.