Kent Company's December 31, 2014 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 Kent's December 31, 2014 balance sheet.
b. Calculate and comment on Kent's working capital and current ratio.

Question

Kent Company's December 31, 2014 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 Kent's December 31, 2014 balance sheet.
b. Calculate and comment on Kent's working capital and current ratio.

Quizplus · Accepted Answer

The Answer of Kent Company's December 31, 2014 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 Kent's December 31, 2014 balance sheet.
b. Calculate and comment on Kent's working capital and current ratio.

Kent Company's December 31, 2014 Trial Balance Includes the Following