Please provide the answer to the following at the URL httpsw

Please provide the answer to the following at the URL:

https://www.chegg.com/homework-help/Introduction-to-Financial-Accounting-11th-edition-chapter-4-problem-50P-solution-9780133251036

Answer

1.Balance Sheet as on 31 dec,2011

There is drop in current ratio from 1.33 to 1.17 from 2010 to 2011.

Company must have higher current ratio that means company is in position to meet its current obligations and payment.

Answer 1.Balance Sheet as on 31 dec,2011


ASSETS			LIABILITIES
Current Assets			Current Liabilities
Cash	$5,269		Accounts payable	$11,145
Accounts receivable	2,571		Short-term notes
	(less doubtful accounts)			Current portion of long-term notes
Inventory	4,992		Interest payable
Temporary investment	4,307		Taxes payable
other current assets	351		Accrued Expense	3,751
	Total Current Assets	$17,490			Total Current Liabilities	$14,896
				Long-term Liabilities
Goodwill	$1,955		Mortgage
				Other long-term liabilities	2,625
other non current assets	1,416			Total Long-Term Liabilities	$2,625

Plant and equipment	4,417
	(less accumulated depreciation)			Shareholders\' Equity


	Total Net Fixed Assets	$7,788			Total Shareholders\' Equity	$7,757


TOTAL ASSETS	$25,278		TOTAL LIABILITIES & EQUITY	$25,278


	2.
Current Ratio	1.17
Quick Ratio	0.84

3. There is drop in current ratio from 1.33 to 1.17 from 2010 to 2011.
There is drop in Quick ratio from 1.02 to 0.84 from 2010 to 2011.

4. Company must have higher current ratio that means company is in position to meet its current obligations and payment.