ACC 556 STR Course Great Wisdom / tutorialrank.com ACC 556 STR Course Great Wisdom / tutorialrank.com | Page 71
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
$ 65,000
$ 35,000
Accounts receivable
payable
10,000
Inventory
90,000
50,000
70,000
Prepaid insurance
$165,000
40,000
Stock investments
80,000
Land
95,000
Buildings
$120,000
$100,000
Accounts payable
Salaries and wages
Mortgage payable
Total liabilities
Common stock
Less: Accumulated
250,000
Retained earnings
depreciation
(30,000)
equity
$370,000
85,000
Total stockholders‘
Trademarks
and
70,000
Total liabilities