Problem
Use the following items taken from the financial statements of the Postal Service for the year ending December 31, 2018:
Accounts payable ..............................................................$10,000
Accounts receivable ............................................................11,000
Accumulated depreciation - equipment ..........................28,000
Advertising expense ............................................................21,000
Cash ......................................................................................14,000
Owner's capital (1/1/18) ...................................................105,000
Owner's drawings ...............................................................14,000
Depreciation expense ........................................................12,000
Insurance expense ...............................................................3,000
Note payable, due 6/30/19 ..................................................5,000
Prepaid insurance (6 - month policy) .................................6,000
Rent expense ......................................................................17,000
Salaries and wages expense .............................................32,000
Service revenue ................................................................125,000
Supplies/Inventory ...............................................................4,000
Supplies expense .................................................................6,000
Equipment (Long-term) ..................................................210,000
A. What are the Current Assets of the Postal Service at December 31, 2018?
B. What are the total current Liabilities of the Postal Service at December 31, 2018?
C. Story Corporation had net income of $300,000 in 2018. The weighted average number of shares outstanding in 2018 was 100,000 shares. Donner Corporation's common stock is selling for $36 per share on the New York Stock Exchange. Story Corporation's price-earnings ratio is...
D. Assume that you deposit $1,000 at a compound interest rate of 8% for 2 years. How much additional interest will you earn as compared to receiving simple interest for the same time period?