Response to the following:
1. A company has $120,000 in current assets; $550,000 in total assets; $90,000 in current liabilities, and $110,000 in total liabilities. Calculate the current ratio of the company. (Round your answer to two decimal places.)
1.33
1.72
1.75
1.09
2. The net income of Hendley Company for the year is $25,000. Withdrawals during the year were $30,000. No new capital contributions were made during the year. Which of the following statements is TRUE?
Hendley, Capital account decreases by $25,00
Hendley, Capital account decreases by $5,000.
Hendley, Capital account increases by $30,00
Hendley, Capital will remain the same.
3. Martinville Company earned revenues of $20,000 and incurred expenses of $4,000. Martinville withdrew $3,500 for personal use. What is the balance in the Income Summary account prior to closing net income or loss to the Martinville, Capital account
Debit balance of $16,000
Debit balance of $12,500
Credit balance of $16,000
Credit balance of $20,000