Reference no: EM132632385

Questions -

Q1. Baltimore Company reports total assets and total liabilities of $241,000 and $90,000, respectively, at the conclusion, of its first year of business. The company earned $85,500 during the first year, and distributed $35,000 to shareholders as dividends. How much did shareholders initially invest in the business?

Q2. During 2018, Towson Company had credit sales of $50,000 and cash sales of $18,000. In 2018 Towson collected $31,000 of accounts receivable resulting from sales on credit. Towson incurred operating expenses of $59,000; of this amount, $42,900 was paid in 2018, and the remaining balance represented a liability at year-end. In addition to these operating expenses, Towson also purchased for cash a three-year insurance policy on January 1, 2018. The cost of this policy was $6,000. What is Towson's 2018 accrual basis net income or loss? Enter a loss as a negative number.

Q3. A partial list shows that Charles Corporation's adjusted trial balance included the following items (all account balances are normal):

Accounts payable $47,000, Accounts receivable $52,500, Capital stock $100,000, Cash $49,000, Dividends $10,000, Interest expense $4,000, Interest payable $3,200, Inventory $32,000, Prepaid expenses $6,200, Property, plant & equipment $123,000, Retained earnings $46,000, Rent expense $18,000, Revenues $101,000, and Salary expense $60,000. How much is Charle's current ratio? (Round your answer to two decimal places.)

Q4. Annapolis Corporation's trial balance included debits to expense accounts of $185,000, credits to revenue accounts of $237,000, and debits to the Dividends account of $50,000. Based on this information, what is the amount of the company's net income or loss. Enter a loss as a negative number.