Gloria Company's December 31, 2021, trial balance includes the following accounts: Other information:
The mortgage payable is due in annual principal installments of $ 4,000 per year.
The note payable is due in full in 18 months' time.
Industry average working capital ratio is 2.5:1
Instructions
a) Prepare the current liabilities section of Gloria's December 31, 2021, balance sheet.
b) Calculate and comment on Gloria's working capital and current ratio.

Question

Gloria Company's December 31, 2021, trial balance includes the following accounts:  Other information:
The mortgage payable is due in annual principal installments of $ 4,000 per year.
The note payable is due in full in 18 months' time.
Industry average working capital ratio is 2.5:1
Instructions 
a) Prepare the current liabilities section of Gloria's December 31, 2021, balance sheet.
b) Calculate and comment on Gloria's working capital and current ratio.

Quizplus · Accepted Answer

The Answer of Gloria Company's December 31, 2021, trial balance includes the following accounts:  Other information:
The mortgage payable is due in annual principal installments of $ 4,000 per year.
The note payable is due in full in 18 months' time.
Industry average working capital ratio is 2.5:1
Instructions 
a) Prepare the current liabilities section of Gloria's December 31, 2021, balance sheet.
b) Calculate and comment on Gloria's working capital and current ratio.

Gloria Company's December 31, 2021, Trial Balance Includes the Following