Module 2 Discussion Forum

Module 2 Discussion Forum - Retained earnings...

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Exercise 3-1 1. Total current assets Current liabilities = $44,000 (accts. payable) + $15,000 (wages payable) + $1,000 (accrued interest) = $60,000 Current assets = $60,000 x 1.5 = $90,000 2. Short-term investments $90,000 (current assets) - $5,000 (cash & equiv.) - $20,000 (net accts. rec.) - $60,000 = $5,000 3. Retained earnings Current assets + Noncurrent assets = Current liabilities + Long-term liabilities + Paid-in capital
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Unformatted text preview: + Retained earnings $90,000 (current assets) + 120,000 (noncurrent assets) = $60,000 (current liabilities) + 30,000 (long-term liabilities) + 100,000 (paid-in-capital) + Retained earnings $210,000 = $190,000 + Retained earnings Retained earnings = $20,000...
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This note was uploaded on 07/13/2011 for the course ACCT 201 taught by Professor Weinberger during the Spring '11 term at Edison State College.

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