The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation: Cash and cash equivalents $ 6,100 Accounts receivable (net) 31,000 Inventory 71,000 Property, plant, and equipment (net) 175,000 Accounts payable 50,000 Salaries payable 22,000 Paid-in capital 155,000 The only asset not listed is short-term investments. The only liabilities not listed are $41,000 notes payable due in two years and related accrued interest of $1,000 due in four months. The current ratio at year-end is 1.5:1. Required: Determine the following at December 31, 2021:

Answer and Explanation:

1. Total current assets

As we know that

Current ratio = Current assets ÷ current liabilities

Current liabilities  is

= Accounts payable + Accrued interest + Salaries payable

= $50,000 + $1,000 + $22,000

= $73,000

And,

Current ratio = 1.5:1

So,

Total current assets is

= 1.5 × $73,000

= $109,500

b.  Short term investment is

Short term investment = Total current assets - Cash and cash equivalents - Accounts receivables - Inventories

= $109,500 - ($6,100 + $31,000 + $71,000)

= $1,400

c. Now retained earning is

Total assets

= Total current assets + Property, plant and equipment

= $109,500 + $175,000

= $284,500

Total liabilities is

= Current liabilities + Notes payable

= $73,000 + $41,000

= $114,000

Retained earnings is

= Total assets - Total liabilities  - Paid in capital

= $284,500 - $114,000 - $155,000

= $15,500

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.

answer; risk transference;