Question:
The following December 31, 2013, fiscal year-end account balance information is available for the
Stonebridge
Corporation:
The only asset not listed is short-term investments. The only liabilities not listed are a $30,000 note
payable due in two years and related accrued interest of $1,000 due in four months. The current ratio at
year-end is 1.5:1.
Required:
Determine the following at December 31, 2013:
1. Total current assets
2. Short-term investments
3. Retained earnings
Answer:
Total current assets
Current liabilities = $44,000 + 15,000 + 1,000 (accrued interest)
= $60,000
Since the current ratio is 1.5:1, Current assets = 1.5 x $60,000 = $90,000
The following December 31, 2013, fiscal year-end account balance information is available for the
Stonebridge
Corporation:
The only asset not listed is short-term investments. The only liabilities not listed are a $30,000 note
payable due in two years and related accrued interest of $1,000 due in four months. The current ratio at
year-end is 1.5:1.
Required:
Determine the following at December 31, 2013:
1. Total current assets
2. Short-term investments
3. Retained earnings
Answer:
Total current assets
Current liabilities = $44,000 + 15,000 + 1,000 (accrued interest)
= $60,000
Since the current ratio is 1.5:1, Current assets = 1.5 x $60,000 = $90,000
