Calculate the Debt Ratio Using the Following Trial Balance of Superior

question 87

Essay

Calculate the debt ratio using the following trial balance of Superior Instruments Company as of December 31,2019.
Superior Instruments Company
Adjusted Trial Balance
December 31, 2019
$$\begin{array} { l l l } \text { Accuunt Title } & \text { Debit } & \text { Credit } \\\text { Cash } & \$ 88,800 & \\\text { Accounts Receivable } & 5,000 & \\\text { Office Supplies } & 3,400 & \\\text { Larid } & 70,000 & \\\text { Building } & 16,500 & \\\text { Equiprnent } & 2,000 & \\\text { Accounts Payable } & & \$ 15,000 \\\text { Notes Payable } & & 60,000 \\\text { Superior, Capital } & & 50,000 \\\text { Superior, Withdrawals } & 1,200 & \\\text { Service Reveruue } & & 72,000 \\\text { Utilities Expense } & 4,100 & \\\text { Salaries Expense } & 4,000 & \\\text { Advertising Expense } &\underline{ 2 , 0 0 0 } & \\\text { Total } &\underline{\$197,000} &\underline{\$197,000} \\ \end{array}$$

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Definitions:

Statement of Cash Flows

A financial report that details the sources and uses of a company's cash during a specific period, showing operations, investing, and financing activities.

Cash Receipts

The money received by a business during a specific period, including amounts received from customers, interest, and dividends.

Statement of Cash Flows

A financial statement detailing the impact of alterations in balance sheet accounts and income on cash and cash equivalents, divided into operating, investing, and financing activities.

Adjusted Trial Balance

A list of accounts and their balances after the company has made all adjustments.