Bens Asphalt Gives you the following balance sheet info as of Dec. 31st, 2022
current liabilities 13200
long term assets 29150
long term liabilities 15400
total assets 41800
stockholders equity 13200
total liabilities and stockholder equity 41800
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?
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