Financial Accounting

Carlos N. Davis
FINACC, Tuesday, 7:50 – 9:30pm

2-1.A. Given: A=$95,000; L=$40,000
OE = 95,000 - $40,000
OE = $55,000

2-1 B. Given: A = $65,000; OE = $40,000
L = $65,000 - $40,000
L = $25,000

2-1 C. Given: Current Assets = $25,000; L = $40,000; OE = $55,000
Non-Current Assets = $95,000 - $25,000
Non-Current Assets = $70,000

2-1 D. Given: Current Ratio = 2.2:1; Current Asset = $33,000, Non-current Asset = $55,000; Liabilities = $15,000
Current Liabilities = Current Assets / Ratio
Current Liabilities = $33,000/2.2
Current Liabilities = $15,000
OE = Total Assets  - Total Liabilities
OE = $88,000 - $15,000
OE = $73,000

2-1 E. Given: Non-current Assets = $60,000; Total Assets = $95,000; Current Assets = $35,000; OE = $70,000
Current Liabilities = $95,000 - $70,000
Current Liabilities = $25,000
Current Ratio = $35,000 / $25,000
Current Ratio = 1.4:1
2-2

|J.L. Gregory Company                                                                                                                                      |
|Balance Sheet ...
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