Chapter 9 Homework Problems_FORMATTED

Chapter 9 Homework Problems_FORMATTED - Chapter 9 Homework...

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Chapter 9 Homework Problems E9-1 Computing Working Capital; Explaining the Quick Ratio and Working Capital LO1, 2, 5, 6 Diane Corporation is preparing its 2012 balance sheet. The company records show the following selected amounts at the end of the accounting period, December 31, 2012: Total assets $ 620,000 Total noncurrent assets 306,000 Liabilities: Notes payable (8%, due in 5 years) 19,000 Accounts payable 55,000 Income taxes payable 13,000 Liability for withholding taxes 2,000 Rent revenue collected in advance 9,000 Bonds payable (due in 15 years) 117,000 Wages payable 9,000 Property taxes payable 5,000 Note payable (10%, due in 6 months) 12,000 Interest payable 600
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220,000 Required: 1 (a) Compute working capital. Working capital 1 (b ) Compute the quick ratio (quick assets are $81,000). Quick ratio 2. Would your computations be different if the company reported $310,000 worth of contingent liabilities in the notes to the statements? E9-2 Recording Payroll Costs LO1 Paul Company completed the salary and wage payroll for March 2011. The payroll provided the following details: Salaries and wages earned $ 220,000 Employee income taxes withheld 44,000 Insurance premiums withheld 2,000 FICA payroll taxes* 16,100 *$16,100 each for employer and employees. Required:
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This note was uploaded on 11/03/2011 for the course AEM 2210 at Cornell University (Engineering School).

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Chapter 9 Homework Problems_FORMATTED - Chapter 9 Homework...

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