Calculate the current ratio and debt ratio

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Reference no: EM131799175

The following items are taken from the financial statements of PQR Company for 2013:

Cash

 $100,000

Inventory

150,000

Accounts Payable

123,000

Accounts Receivable

   40,000

Supplies

10,000

Salaries Payable

 30,000

Unearned Revenue

75,000

Intangible assets

 78,000

Property, plant, and equipment, net

156,000

Long term debt

  50,000

Common Stock

  25,000

Additional Paid in Capital

  175,000

Retained Earnings, 12/31/2012

  13,000

Service revenue  

   402,000

Cost of Goods Sold 

 250,000

Rent expense 

  48,000

Supplies expense     

25,000

Insurance expense     

36,000

Instructions:

(1) Create a classified balance sheet in good form for the year ended 2013.

(2) Calculate the current ratio and debt ratio and explain your findings. 

Reference no: EM131799175

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