The Following Items Are Taken from the Adjusted Trial Balance

question 8

Essay

The following items are taken from the adjusted trial balance of Sutch Video Productions at December 31, 2015: Instructions
a. Calculate the Profit.
b. Calculate the balance of Owner's Equity that would appear on a balance sheet at December 31, 2015.
c. Prepare a classified balance sheet for Sutch Company at December 31, 2015.
d. Calculate the working capital and the current ratio. Which of the two measures is preferable for comparing Sutch's liquidity with competitors'?
e. Calculate the acid-test ratio for the company. What could the company do to improve this ratio?

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Definitions:

Biological Sciences

The branch of natural science concerned with the study of life and living organisms, including their structure, function, growth, evolution, distribution, and taxonomy.

Genome

The complete structure sequence of DNA for a species.

DNA

Deoxyribonucleic acid, the hereditary material in humans and almost all other organisms, containing the genetic instructions for development, functioning, growth, and reproduction.

Genotype

The alleles possessed for a particular trait.