The Calendar Year-End Adjusted Trial Balance for Blessinger Co

question 384

Essay

The calendar year-end adjusted trial balance for Blessinger Co.follows:
Required:
(a)Determine the amounts of current assets and current liabilities.(Note: A $9,000 installment on the long-term note payable is due within one year.)
(b)Calculate the current ratio.Comment on the ability of Blessinger Co.to meets its short-term debts.

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Definitions:

Supervisory Expense

Costs associated with managing and overseeing employees or departments, not directly tied to production or service delivery.

Overhead Costs

Expenses related to the day-to-day operations of a business that are not directly tied to the production of goods or services, such as rent, utilities, and administrative salaries.

Equipment Depreciation

The process of spreading out the cost of physical assets over their useful lives for accounting and tax purposes.

Supervisory Expense

Costs associated with the salaries and benefits of supervisory staff, including managers and team leaders.