FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Using ratios to reconstruct a balance sheet

Traditional Mills’s balance sheet appears as Follows amounts in thousands:

Use the following ratio data to complete Traditional Mills’s balance sheet.

  1. Current ratio is 0.72.
  2. Acid-test ratio is 0.36.
TRADITIONAL MILLS
Balance Sheet
December 31, 2018
Assets
Liabilities
Cash
45 Total Current Liabilities
$2,500
Accounts Receivables
(e)
(a) Long-term Note Payable
800 Other Long-term Liabilities
Merchandise Inventory
760
Prepaid Expenses
(b) Total Liabilities
Total Current Assets
(e)
Plant Assets, Net
(d)
Stockholders' Equity
Other Assets
2,490 Stockholders' Equity
2,450
Total Assets
$7,000 Total Liabilities and Stockholders' Equity
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Transcribed Image Text:TRADITIONAL MILLS Balance Sheet December 31, 2018 Assets Liabilities Cash 45 Total Current Liabilities $2,500 Accounts Receivables (e) (a) Long-term Note Payable 800 Other Long-term Liabilities Merchandise Inventory 760 Prepaid Expenses (b) Total Liabilities Total Current Assets (e) Plant Assets, Net (d) Stockholders' Equity Other Assets 2,490 Stockholders' Equity 2,450 Total Assets $7,000 Total Liabilities and Stockholders' Equity
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