These financial statement items are for Lexulous Company at year-end, July 31, 2

Question

These financial statement items are for Lexulous Company at year-end, July 31, 2011.

Salaries payable            $4,580                           Note Payable(long-term)            $3,300

Salaries expense            45,700                           Cash                                          22,200

Utilities expense            19,100                           Accounts Receivable                    9,780

Equipment                     22,000                           Accumulated depreciation           6,000

Accounts payable            4,100                            Dividends                                    4,000

Commission revenue      56,100                            Depreciation expense                  4,000

Rent revenue                  6,500                            Retained earnings (1/1/2011)      30,000

Common stock               16,200

Prepare a classified balance sheet for Lexulous Company at July 31, 20111.
Calculate the working capital.
Calculate the current ratio.

Explanation / Answer

Current Ratio= Current Assets / Current Liabilities Current Ratio= 2.66944 Working Capital= Current Assets - Current Liabilities Working Capital= 20,000

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