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Current ratio on december 31, 2015

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Reference no: EM131712396

A recent balance sheet of Save-A-Lot Supplies is provided below:
SAVE-A-LOT SUPPLIES
Balance Sheet
December 31, 2015

Assets

Cash                                                                                                              $13,600

Accounts receivable                                                             14,400

Office supplies                                                                                                        600

Prepaid rent                                                                            3,400

Equipment                                                    $ 24,000

Accumulated depreciation: equipment             (9,600) S 14,400

Total assets                                                                        $ 46,400

 

 

Liabilities Accounts payable

Income taxes payable

S 4,400

3,600

 

 

Total liabilities                                                                                              $     8,000

Stockholders' Equity

Capital stock                                                               S 20,000

Retained earnings                                                                                   18,400

Total stockholders' equity                                                                  S 38,400

Total liabilities and stockholders' equity                            S 46,400

Other information provided by the company is as follows:
Total revenue for the year ended December 31, 2015 $ 51,000
Total expenses for the year ended December 31, 2015 38,250
Total stockholders' equity, January 1, 2015 29,600

a. Net income percentage in 2015.
b. Return on equity in 2015.
c. Working capital on December 31, 2015.
d. Current ratio on December 31, 2015.

Reference no: EM131712396

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