Current Ratio Assignment
February 16th, 2020
The Old Professor Publishing Company
Statement of Operations
Year Ending December 31, 2017
(in thousands)
| Revenue: | |
| Original Publications | $28,500 |
| Duplicate Prints | 6,000 |
| Citations/Royalties | 3,500 |
| Total Revenue | $36,000 |
| Expenses: | |
| Salaries | $11,000 |
| Printing Materials | 4,000 |
| Uncollectables | 175 |
| Machine Maintenance | 2,500 |
| Depreciation | 250 |
| Total Expenses | $15,750 |
| Net Income | $20,250 |
| Net Assets (beginning yr.) | $700 |
| Net Assets/Equity (end yr.) | $20,950 |
The Old Professor Publishing Company
Balance Sheet
Year Ending December 31, 2017
(in thousands)
| Assets: | |
| Cash and Cash Equivalents | $10,000 |
| Printed Copies (Extras) | 9,000 |
| Supplies | 400 |
| Total Current Assets | $19,400 |
| Net Property and Equipment | $7,750 |
| Total Assets | $27,150 |
| Liabilities and Net Assets: | |
| Accounts Payable | $2,000 |
| Accrued Expenses | 800 |
| Current Debt Portion | 150 |
| Total Current Liabilities | $2,950 |
| Long-term Debt | $3,000 |
| Total Liabilities | $5,950 |
| Net Assets/Equity (end yr.) | $21,200 |
| Total Liabilities and Net Assets | $27,150 |
- Referencing ‘The Old Professor Publishing Company’ financial statements, calculate the current ratio. Get Finance homework help today
