Moonstar Company has selected accounts after posting adjusting entries which are given below:
Accounts Payable $ 45,000
Notes Payable, 3-month 80,000
Accumulated Depreciation—Equipment 14,000
Payroll and Benefits Payable 27,000
Notes Payable, 5-year, 8% 30,000
Estimated Warranty Liability 34,000
Payroll Tax Expense 6,000
Interest Payable 3,000
Mortgage Payable 200,000
Sales Tax Payable 16,000
Requirements:
Create the present liability section of Moonstar Company's balance sheet, supposing $25,000 of mortgage is payable next year. (Name liabilities in magnitude order, with largest first.)
Explain Moonstar’s liquidity, supposing total current assets are $450,000.