Your answer is incorrect Try again By how much does current

Your answer is incorrect. Try again. By how much does current assets exceed current liabilities? Current assets exceed current liabilities by What percentage of current assets are in the form of cash? (Round answer to 2 decimal places, eg, 15.25%.) Percentage of current assets are in the form of cash is Determine the company\'s liquidity The company\'s liquidty appears to be Click if you would like to Show Work for this question: Open Show Work

Solution

BALANCE SHEET ASSETS Current Assets: Cash 18600 Accounts receivable 14300 Prepid insurance 4900 Total current assets 37800 Property, plant and equipment: Land 67400 Equipment 62900 Less: Accumulated depreciation-Equipment 18900 44000 Buildings 128800 Less: Accumulated depreciation-Buildings 42700 86100 Total property, plant and equipment 197500 TOTAL ASSETS 235300 LIABILITIES AND STOCKHOLDERS\' EQUITY Current liabilities: Accounts payable 11700 Interest payable 2900 Notes payable 19100 Total current liabilities 33700 Long term liabilities: Notes payable (96500-19100) 77400 Total liabilities 111100 Shareholders\' Equity: Common stock 92700 Retained earnings (25600+5900) 31500 Total stockholders\' equity 124200 TOTAL LIABILITIES AND STOCKHOLDERS\' EQUITY 235300 [Net Income for the year = 15800-500-6500-2900= 5900] Current assets exceed current liabilities by 37800-33700 = $4,100 Percentage of current assets in the form of cash = 18600/37800 = 49.21%