Question - The following items are taken from the financial statements of BCT Company for 2013:
Cash $138,800
Accounts Payable 75,000
Supplies 15,000
Accounts Receivable 35,000
Inventory 45,000
Salaries Payable 30,000
Unearned Revenue 45,000
Property, plant, and equipment, net 318,000
Intangible assets 260,000
Common Stock 100,000
Additional Paid-in Capital 400,000
Retained Earnings, 12/31/2012 21,000
Long-term debt 90,000
Service revenue 746,000
Cost of Goods Sold 639,200
Rent expense 30,000
Supplies expense 5,000
Insurance expense 21,000
Instructions:
(1) Create a classified balance sheet in good form for the year ended 2013.
(2) Calculate the current ratio and debt ratio and explain your findings.