Question: Computing and Interpreting the Current Ratio Refer to problem below. Compute the Electronic Games current ratio to two decimal places assuming current assets totaled $487,500 at March 31, 2009. Knowing the current ratio was 1.15 on March 31, 2008, would you say the company's liquidity improved or deteriorated in 2009?
Problem: Reporting Liabilities in a Classified Balance Sheet Prepare the liabilities sections of a classified balance sheet for Electronic Games Inc. using the following balances reported at March 31, 2009: Unearned Revenue of $23,000; Accrued Salaries and Employee benefits of $35,670; Accounts Payable of $180,330; Short-Term Notes Payable of $50,000; Long-Term Debt of $100,000 (including current portion of long-term debt equal to $20,000); and Sales Taxes and Other Current Liabilities of $1,000.