Multiple step Income statement

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You may need to refer to your textbook for additional information.
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dollars or numbers in the $ cells.
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P2-3A

The following balance sheet items, listed in alphabetical order, are available from the records of Singer Company
at December 31, 2012:

Accounts payable$ 34,280
Accounts receivable26,700
Accumulated depreciation—buildings40,000
Accumulated depreciation—equipment12,500
Bonds payable, due December 31, 2018250,000
Buildings150,000
Capital stock, $1 par value200,000
Cash60,790
Equipment84,500
Income taxes payable7,500
Interest payable2,200
Land250,000
Marketable securities15,000
Merchandise inventory112,900
Notes payable, due April 15, 20136,500
Office supplies400
Paid-in capital in excess of par value75,000
Patents45,000
Prepaid rent3,600
Retained earnings113,510
Salaries payable7,400

Required

1. Complete the following classified balance sheet as of December 31, 2012.
Note: Classify Assets and Liabilities in the order of Liquidity

SINGER COMPANY
BALANCE SHEET
DECEMBER 31, 2012
Assets
Current assets:
Cash$ 60,790
Marketable securities15,000
Accounts receivable26,700
Merchandise inventory112,900
Prepaid rent3,600
Office supplies400
Total current assets$ 219,390
Property, plant, and equipment:
Land$ 250,000
Buildings$ 150,000
Less: Accumulated depreciation40,000110,000
Equipment$ 84,500
Less: Accumulated depreciation12,50072,000
Total property, plant, and equipment$ 182,000
Intangible assets:
Patents45,000
Total assets$ 696,390
Liabilities
Current liabilities:
Accounts payable$ 34,280
Salaries payable7,400
Income taxes payable7,500
Interest payable2,200
Notes payable, due April 15, 20136,500
Total current liabilities$ 57,880
Long-term debt:
Bonds payable, due December 31, 2018250,000
Total liabilities$ 307,880
Stockholders’ Equity
Contributed capital:
Capital stock, $1 par value
200,000 share outstanding$ 200,000
Paid-in capital in excess of par value75,000
Total contributed capital$ 275,000
Retained earnings113,510
Total stockholders’ equity388,510
Total liabilities and stockholders’ equity$ 696,390

2. Compute Singer’s current ratio.
(Round answers to 2 decimal places)

Current Ratio$ 219,390=3.79
$ 57,880

3. On the basis of your answer to (2), does Singer appear to be liquid?
What other information do you need to fully answer that question?

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