Problem 1

Ink Jet recorded the following accounts in thousands of dollars;

Building Accounts payable Total Expenses Accumulated Depreciation Accrued Liabilities Prepaid Expenses $ 4,000 $ 400 $ 1,050 $ 2,800 $ 300 $ 100

1 Identify the assets including the contra assets and liablilties 2 Classify each asset and each liability as current and long term 3 Compute the following: a Total Current Assets b Book Value of Plant Assets c Total Current Liability d Total Long Term Dedbt 4 Compute the Current Ratio

1
Assets Cash Receivables Prepaid expenses Building Equipment Contra Assets Accumulatated Depreciation Liabilities Accounts Payable Accrued Liabilities 200,000 500,000 100,000 4,000,000 800,000

2 Current
current current current

2,800,000

400,000 300,000

current current

3
a Total Current Assets Cash Receivables Prepaid expenses Total Current Assets 200,000 500,000 100,000 800,000

Book Value of Plant Assets Building 4,000,000

Equipment

800,000 4,800,000 2,800,000 2,000,000

Accumulated Depreciation Plant assets, net c Total current liability Accounts payable Accrued liabilities Total current liability

400,000 300,000 700,000

There is no long term debt as far as we can see here, but the Debt Ratio is Debt Ratio 0.25 or 25%

4
Current Ratio 1.14

Service revenue Cash Receivables Intrerest Expense Equipment

$ 1,300 $ 200 $ 500 $ 90 $ 800

Long Term

long term long term

Debt Ratio is