The multiple-step income statement is considered more useful than the single-step income statement because it highlights the components of net income.
· Question 24 Use the following data to calculate the current ratio. Carne Auto Supplies Balance Sheet December 31, 2014
Cash |
$ 35,000 |
Accounts payable |
$ 65,000 |
|
|
Accounts receivable 50,000 Salaries and wages payable 10,000
Inventory |
70,000 |
Mortgage payable |
90,000 |
|
|
Prepaid insurance |
40,000 |
Total liabilities |
$ 165,000 |
|
|
Stock investments 80,000 Land 95,000
Buildings |
$ 100,000 |
Common stock |
$ 120,000 |
|
|
Less: Accumulated 250,000
Retained earnings
depreciation( 30,000) 85,000 Total stockholders‘ equity $ 370,000
Trademarks |
70,000 |
Total liabilities |
and |
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|