Question - The following items are taken from the financial statements of SRW Company for 2012:
|
Cash
|
$375,000
|
|
Accounts Receivable
|
125,000
|
|
Prepaid Insurance
|
100,000
|
|
Accounts Payable
|
88,000
|
|
Unearned Service Revenue
|
15,000
|
|
Equipment, net of accumulated depreciation
|
177,000
|
|
Common Stock
|
125,000
|
|
Retained Earnings 12/31/2011
|
106,000
|
|
Long-term debt
|
336,500
|
|
Service revenue
|
225,000
|
|
Cost of Goods Sold
|
62,500
|
|
Rent expense
|
30,000
|
|
Supplies expense
|
8,000
|
|
Insurance expense
|
18,000
|
Instructions
(a) Please create a classified Balance Sheet in good form for the year ended 2012.
(b) Please calculate the current ratio.