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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Using ratios to reconstruct a
Traditional Mills’s balance sheet appears as Follows amounts in thousands:
Use the following ratio data to complete Traditional Mills’s balance sheet.
Current ratio is 0.72.- Acid-test ratio is 0.36.

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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