Reference no: EM132229582

Questions -

Q1. During 2018, Towson Company had credit sales of $48,000 and cash sales of $14,000. In 2018 Towson collected $31,000 of accounts receivable resulting from sales on credit. Towson incurred operating expenses of $55,000; 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 $3,000. What is Towson's 2018 accrual basis net income or loss? Enter a loss as a negative number.

Q2. Bravo Company experienced a total increase in stockholders' equity of $24,000 during the current year. Stockholders' equity was increased by additional issuances of $52,000 capital stock during the year. No dividends were paid. Expenses incurred during the year were $80,000. How much was Bravo's revenue for the year?

Q3. A partial list shows that Alpha Corporation's adjusted trial balance included the following items (all account balances are normal): Accounts payable $44,000, Accounts receivable $55,500, Capital stock $100,000, Cash $51,000, Dividends $10,000, Goodwill $47,000, Interest expense $4,000, Interest payable $2,600, Inventory $32,000, Note payable $30,000, Prepaid expenses $4,600, Property, plant & equipment $123,000, Retained earnings $46,000, Rent expense $18,000, Revenues $101,000, and Salary expense $60,000. The note payable balance is due in nine months. How much is Alpha's current ratio?