Assignment_2_Solution - (1 $35,000 $35,000(2 –$4,000...

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BRIEF EXERCISE 2-5 Working capital = Current assets – Current liabilities Current assets ( $ 47,500,000 Current liabilities 145,800,000 Working capital ($ 98,300,000 ) Current ratio: Current assets Current liabilitie = $47,500,000 $145,800,000 = .33:1 EXERCISE 3-2 Assets = Liabilities + Stockholders’ Equity Cash + Accounts Receivable + Office Equipment = Accounts Payable + Common Stock + Retained Earnings
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Unformatted text preview: (1) +$35,000 +$35,000 (2) –$4,000 –$4,000 Rent Expense (3) +12,000 –$12,000 (4) +5,000 +5,000 Service Revenue (5) –11,000 –11,000 Utilities Expense (6) +30,000 +$30,000 Issued Stock (7) –35,000 –35,000 (8) +1,000 –1,000 Advertising Expense –$3,000 –$12,000 +$35,000 = +$ 1,000 +$30,000 –$11,000 $20,000 $20,000 3-1...
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