Assignment_2_Solution

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 = $4 7,500,000 $14 5,800,000 = .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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This note was uploaded on 03/28/2009 for the course CSE 120A taught by Professor Healey during the Spring '08 term at UC Irvine.

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