The current asset section of Guardian Consultant's balance sheet consists of cash, accounts receivable, and prepaid expenses. The 2013 balance sheet reported the following: cash, $1,340,000; prepaid expenses, $400,000; noncurrent assets, $2,800,000; and shareholders' equity, $2,900,000. The current ratio at the end of the year was 2.5 and the debt to equity ratio was 1.5.
Required:
Determine the following 2011 amounts and ratios:
1.Current liabilities.
2.Long-term liabilities.
3.Accounts receivable.
4.The acid-test ratio.