Question - The following items are taken from the financial statements of PQR Company for 2013:
Cash $100,000
Inventory 150,000
Accounts Payable 123,000
Accounts Receivable 40,000
Supplies 10,000
Salaries Payable 30,000
Unearned Revenue 75,000
Intangible assets 78,000
Property, plant, and equipment, net 156,000
Long term debt 50,000
Common Stock 25,000
Additional Paid in Capital 175,000
Retained Earnings, 12/31/2012 13,000
Service revenue 402,000
Cost of Goods Sold 250,000
Rent expense 48,000
Supplies expense 25,000
Insurance expense 36,000
Instructions:
(1) Create a classified balance sheet in good form for the year ended 2013.
(2) Calculate the current ratio and debt ratio and explain your findings.