Prepare a balance sheet from the following information. what is the net working capital and debt ratio?
cash$ 50,000
accounts receivable 42,700
accounts payable 23,000
short-term notes payable 10,500
inventories 40,000
gross fixed assets 1,280,000
other current assets 5,000
long-term debt 200,000
common stock 490,000
other assets 15,000
accumulated depreciation 312,000
retained earning ?

Net working capital = $104,200

Debt ratio = 0.21

Retained earning = $397,200  

Explanation:

The preparation of the balance sheet is presented below:

Assets

Current Assets

Cash$ 50,000

Accounts receivable $42,700

Inventories $40,000

Other current assets $5,000

Total current assets $137,700

Gross fixed assets 1,280,000

Less: Accumulated depreciation -$312,000

Net fixed assets $968,000

Other assets $15,000

Total assets $1,120,700

Liabilities

Current liabilities

Accounts payable $23,000

Short-term notes payable $10,500

Total current liabilities $33,500

Long-term debt 200,000

Total liabilities $233,500

Equity

Common stock 490,000

Retained earning $397,200      (Balancing figure)

Total equity $887,200

Total liabilities and owners equity $1,120,700

The computation is shown below:

Net working capital = Current assets - current liabilities

                                 =  $137,700 - $33,500

                                 = $104,200

And, the debt ratio would be

= Total liabilities ÷ Total assets

= $233,500 ÷ $1,120,700

= 0.21

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explanation:

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a recipe serves 8 people, and calls for 5 lbs of apples and 2 cups of flour. you want to prepare it for 24 people. divide 24 by 8 to get 3, and then multiply your ingredients by 3.

so for 24 people, you'll need 15 lbs of apples, and 6 cups of flour.