The current asset section of Seifert & Seifert, CPAs' balance sheet consists of cash, accounts receivable, investments, and prepaid expenses. The 2018 balance sheet reported the following: cash, $110,000; investments, $22,000; prepaid expenses, $18,000; long-term assets, $422,000; and shareholders' equity, $350,000. The current ratio at the end of the year was 1.6 and the debt to equity ratio was .8.

Required:
Determine the following 2018 amounts and ratios:
1. Current liabilities.
2. Long-term liabilities.
3. Accounts receivable.
4. The acid-test ratio.

Question

Required:
Determine the following 2018 amounts and ratios:
1. Current liabilities.
2. Long-term liabilities.
3. Accounts receivable.
4. The acid-test ratio.

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The Answer of The current asset section of Seifert & Seifert, CPAs' balance sheet consists of cash, accounts receivable, investments, and prepaid expenses. The 2018 balance sheet reported the following: cash, $110,000; investments, $22,000; prepaid expenses, $18,000; long-term assets, $422,000; and shareholders' equity, $350,000. The current ratio at the end of the year was 1.6 and the debt to equity ratio was .8.

Required:
Determine the following 2018 amounts and ratios:
1. Current liabilities.
2. Long-term liabilities.
3. Accounts receivable.
4. The acid-test ratio.

The Current Asset Section of Seifert & Seifert, CPAs' Balance