Lesson 2.2 Activity 5, 6 and 7
5.Compute the Total Assets from the following information
- Determine the total Current Assets and determine the total Current Liabilities.
- Prepare the Balance Sheet for the Village Inn. (see example on the VLE forum, and follow the same design)​
Calculate the Net Working Capital, the Current Ratio, and the Solvency Ratio using the information obtained in the Balance Sheet.​
Based on the results you obtained in the previous question, analyze the liquidity and solvency of the Village Inn.
| Accounts payable​ |
$77,000​ |
| Accounts receivable​ |
96,900​ |
| Accrued expenses​ |
91,000​ |
| Accumulated depreciation​ |
338,400​ |
| Additional Paid-In Capital​ |
25,000 ​ |
| Building​ |
1,786,400​ |
| Cash​ |
47,800​ |
| Common stock​ |
300,000​ |
| Current maturities of long-term debt​ |
14,000​ |
| Furniture and fixtures​ |
275,400​ |
| Inventories​ |
19,900​ |
| Land​ |
115,500​ |
| Long-term debt​ |
1,527,000​ |
| Other assets​ |
172,200​ |
| Other current liabilities​ |
40,800​ |
| Prepaid expenses​ |
2,400​ |
| Retained earnings​ |
102,300​ |
