Use the Balance Sheet of Chicago, Inc $\quad$ $\quad$

question 8

Essay

Use the balance sheet of Chicago, Inc. to calculate the current ratio for 2019 and 2018
Chicago, Inc.
Comparative Balance Sheet
December 31,2019 and 2018
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$2019 \quad 2018$ Assets
$\begin{array}{lll}\text { Total Current Assets } & \$ 200,000 & \$ 100,000 \\\text { Property, Plant, and Equipment, Net } & 550,000 & 500,000 \\\text { Other Assets } & \underline{50,000} & \underline{50,000} \\\text { Total Assets } & \$ 800,000 & \$ 650,000\end{array}$
Liabilities
$\begin{array}{lll}\text { Total Current Liabilities } & \$ 150,000 & \$ 100,000 \\\text { Long-term Debt } & \underline{350,000} & \underline{250,000} \\\text { Total Liabilities } & \$ 00,000 & 350,000\end{array}$ Stockholders' Equity
$\begin{array}{lll}\text { Total Stockholders' Equity } & \underline{300,000} & \underline{300,000} \\\text { Total Liabilities and Stockholders' Equity } & \$ 800,000 & \$ 650,000\end{array}$

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Definitions:

Guarantor

A person, organization, or entity that agrees to be responsible for another's debt or obligations if that individual fails to fulfill them.

Infant

A minor; a person under the legal age of majority.

Contract

A legal agreement among two or more parties that is binding and enforceable by the legal system.

Age of Majority

The legally defined age at which an individual is recognized as an adult and is capable of assuming responsibility for their actions in civil and criminal law.