Chapter 3 Review Questions1. The following selected balances came from ABC Company’s adjusted trial balance for December 31, 2012. CA = Current Asset, CL = Current Liability, NCA = Noncurrent Asset, NCL = Noncurrent liability, E = EquitySalaries Payable (CL)$15,000Accounts Receivable (CA)16,500Accounts Payable (CL)20,000Income taxes payable (CL)5,500Cash (CA)16,700Dividends payable (CL)14,200Prepaid insurance (CA)3,000Mortgage payable (NCL)100,000Inventory (CA)250,000Sinking fund assets (NCA)63,400Short term investments (CA)12,500Discount on Bonds Payable (NCL)4,000Investment in Subsidiary(E)50,000a.The amount that should be reported as current assets is _____b.The amount that should be reported as current liabilities is ______c.What is ABC Company’s current ratio? ______2. XYZ Company had the following selected account balances at December 31, 2012:Bonds payable, due 2013(CL)$ 125,000Premium on bonds payable, due 2013 (CL) 6,000Accounts payable (CL)12,000Dividends payable (CL)3,500Notes payable, due 2015(NCL)250,000a.What amount should be reported as current liabilities in the balance sheet?