Compute Jamar Company's current ratio using the following information.
|
Accounts receivable
|
$15,000
|
Long-term notes payable
|
$20,000
|
|
Accounts payable
|
10,000
|
Office supplies
|
1,800
|
|
Buildings
|
42,000
|
Prepaid insurance
|
2,500
|
|
Cash
|
6,000
|
Unearned services revenue
|
4,000
|
2. The following are common categories on a classified balance sheet.
A. Current assets
B. Long-term investments
C. Plant assets
D. Intangible assets
E. Current liabilities
F. Long-term liabilities
For each of the following items, select the letter that identifies the balance sheet category where the item typically would appear.
1. Trademarks
2. Accounts receivable
3. Land not currently used in operations
4. Notes payable (due in three years)
5. Cash
6. Wages payable
7. Store equipment
8. Accounts payable