-Refer to Baloon-E-Tunes

question 225

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.Calculate the amount of working capital at December 31.What can you learn from the current ratio that you cannot learn from the amount of working capital?

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Definitions:

Computed Tomography

A diagnostic imaging procedure that uses a combination of X-rays and computer technology to produce detailed cross-sectional images of the body's internal structures.

Electroencephalography

A non-invasive test that involves the use of sensors placed on the scalp to measure the electrical activity of the brain.

Diagnostic Procedure

A method or technique used to identify a disease or condition from its signs and symptoms.

Narcolepsy

A sleep disorder marked by uncontrollable episodes of falling asleep during the daytime.