Bens Asphalt Gives you the following balance sheet info as of Dec. 31st, 2022
src="/qa/attachment/10935165/" alt="Screen Shot 2019-11-30 at 11.09.54 PM.png" />
They also reported net income for 2022 of $17,600, income tax expense of $3,520 and also a interest expense of $1,430.
I was able to calculate the Current Ratio and Working Capital for 2022, however I believe I used the wrong formula. What would be the correct way of doing this?
For 2022 the Current Ratio I got was .96:1
Working Capital -$550
I dont think these are correct?
Also the question asks to compute new ratios if at the end of 2022 Bens Asphalt Used 3300 cash to pay off 3300 of accounts payable...this is where I get confused on the first section too. Was I supposed to use the little blurb at the end that is underlined to get the first ratios?
Recently Asked Questions
- How are transactions recorded using the perpetual system?
- Little cindy-Lou who incorporated exchanged land and paid $22,000 cash for new equipment. The book value of the land was 82,000 and the fair value of the land
- Analytical procedures performed near the end of the audit to assist the auditor in forming an overall conclusion on the financial statements are aimed