Assignment Gradebook ORION Downloadable eTextbook signment MESSAGE MY NSTRU PREN

Question

Assignment Gradebook ORION Downloadable eTextbook signment MESSAGE MY NSTRU PRENTER VERSION Exercise 2-10 (Part Level Submission) The chief financial officer (CFO) of Whispering winds Corp. requested that the accounting department prepare a ereliminary balance sheet on December 30, 2017, so that the CFO could get an idea of how the company stood. He knows that certaln debt agreements with its creditors require the company to maintain a current ratio of at least 2:1. The preliminary bafance sheet is as follows Winds Corp Balance Sheet December 30, 2017 526,300 31,600 Cash Accounts receivable Prepaid insurance Equipment (net) Total assets Current liabilities 6,000 63.900 201,800 $265,70o $ 21,300 Accounts payable Salaries and wages payable 1,000 13,900 Long-tem liabilities Notes payable Total liabilities ockholders' equity 100,000 151.800 Retained earning Total liabilities and stockholders" equity SAMSUNG

Explanation / Answer

Current Asset=63900-21300= 42600 Current Liabilities =32900-21300= 11600 Current Ratio=Current Asset/CurrentLiabilities =42600/11600 3.7 Working Capiral =Current Asset -Current Liabilities 31000

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