The company reported a current ratio of 2.1 and 2.22 as of December 31, 2020 and December 31, 202 respectively. A section of the comparative statement of financial position is as follows: 12/31/2021 12/31/2020 P 1,120,000 Cash Accounts Receivable 95,000 Inventory 135,000 750,000 Property, plant and equipment Total Assets P 2,100,000 Accounts Payable Unearned Revenue 108,000 292,000 600,000 Bonds payable (maturing 10/31/2021) Total Liabilities P 1,000,000 ? Suppose the company was able to raise its unearned revenues by 20% in 2021 and the company manag its accounts payable to be 80% of current inventory stocks on hand (Hint: Current ratio = Current Assets/Current Liabilities) 4) How much is the reported total liabilities in the company's 2021 statement of financial position? 5) How much is the balance of Accounts Payable as of 12/31/2021? P 745,488 110,000 ? 550,000 ? 7227 ? ? ?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The company reported a current ratio of 2.1 and 2.22 as of December 31, 2020 and December 31, 2021
respectively. A section of the comparative statement of financial position is as follows:
12/31/2021
12/31/2020
P 1,120,000
Cash
P 745,488
110,000
Accounts Receivable
95,000
Inventory
135,000
?
750,000
550,000
Property, plant and equipment
Total Assets
P 2,100,000
?
Accounts Payable
?
Unearned Revenue
?
108,000
292,000
600,000
P 1,000,000
?
Bonds payable (maturing 10/31/2021)
Total Liabilities
?
Suppose the company was able to raise its unearned revenues by 20% in 2021 and the company manages
its accounts payable to be 80% of current inventory stocks on hand
(Hint: Current ratio = Current Assets/Current Liabilities)
4) How much is the reported total liabilities in the company's 2021 statement of financial position?
5) How much is the balance of Accounts Payable as of 12/31/2021?
-..
Transcribed Image Text:The company reported a current ratio of 2.1 and 2.22 as of December 31, 2020 and December 31, 2021 respectively. A section of the comparative statement of financial position is as follows: 12/31/2021 12/31/2020 P 1,120,000 Cash P 745,488 110,000 Accounts Receivable 95,000 Inventory 135,000 ? 750,000 550,000 Property, plant and equipment Total Assets P 2,100,000 ? Accounts Payable ? Unearned Revenue ? 108,000 292,000 600,000 P 1,000,000 ? Bonds payable (maturing 10/31/2021) Total Liabilities ? Suppose the company was able to raise its unearned revenues by 20% in 2021 and the company manages its accounts payable to be 80% of current inventory stocks on hand (Hint: Current ratio = Current Assets/Current Liabilities) 4) How much is the reported total liabilities in the company's 2021 statement of financial position? 5) How much is the balance of Accounts Payable as of 12/31/2021? -..
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