-Refer to Baloon-E-Tunes

question 179

Essay

$$\begin{array} { l r l r } \text { Retained earnings } & \$ 370,000 & \text { Notes payable (due in 6 years) } & \text { \$120,000 } \\\text { Accumulated depreciation } & 130,000 & \text { Salaries payable } & 10,000 \\\text { Income taxes payable } & 240,000 & \text { Supplies } & 20,000 \\\text { Plant } & 480,000 & \text { Accounts payable } & 360,000 \\\text { Cash } & 110,000 & \text { Inventory } & 330,000 \\\text { Accounts receivable } & 350,000 & \text { Land } & 500,000 \\\text { Common shares } & 600,000 & \text { Prepaid insurance } & 40,000\end{array}$$
-Refer to Baloon-E-Tunes.Prepare the current liabilities section of the balance sheet at December 31.You may omit the heading.If the amount of current liabilities were larger,what effect would this have on the current ratio?

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Definitions:

Differentiation

A marketing strategy where a company seeks to distinguish its product or service from competitors’ offerings through unique features, benefits, or quality.

Cost Focus

A business strategy that aims to gain a competitive advantage by reducing operating costs and offering lower prices than competitors.

Market Specialization

A strategy where a company focuses its marketing efforts on a specific market niche, tailoring its products, services, and marketing activities to meet the needs of that particular market segment.

Product Specialization

Product specialization is a strategy where a business focuses on producing and selling a limited range of products to target a specific market segment or demographic effectively.