Make a condensed balance sheet as of december

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Question - 1. Peanut Butter Chocolate Pie Corporation has requested that you determine whether the? company's ability to pay its current liabilities and? long-term debt has improved or deteriorated during 2020. To answer this? question, compute the following ratios for 2020 and 2019?: ?(a) current? ratio, (b) a?cid-test ?ratio, (c) debt ?ratio, (d)? debt/equity ratio and? (e) times-interest-earned ratio. Summarize the results of your analysis in a paragraph explaining what the results of the calculations mean.

 

2020

2019

Cash

$13,500

$29,000

Short-term investments

17,000

---

Net receivables

59,500

67,000

Inventory

141,000

145,000

Prepaid expenses

13,000

9,000

Total assets

305,000

260,000

Total current liabilities

122,000

146,000

Total liabilities

138,000

141,500

Income from operations

111,000

84,000

Interest expense

25,000

21,000

2. The following data are adapted from the financial statements of Virginia's Tennis? Shops, Inc.:

Total current assets

$1,089,000

Accumulated amortization

2,000,000

Total liabilities

1,365,000

Preferred shares

0

Debt ratio

65%

Current ratio

1.65

Required - Make a condensed balance sheet as of December 31, 2019.

Reference no: EM133145194

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