The current asset section of Seifert & Seifert, CPA’s balance sheet consists of cash, accounts receivable, investments, and prepaid expenses. The 2011 balance sheet reported the following: cash, $110,000; investments, $22,000; prepaid expenses, $18,000; noncurrent assets, $422,000; and shareholders’ equity, $350,000. The current ratio at the end of the year was 1.6 and the debt to equity ratio was .8.
Required: Determine the following 2011 amounts and ratios:
a. Current liabilities.
b. Long-term liabilities.
c. Accounts receivable.
d. The acid-test ratio.