Balance Sheet The December 31, 2007 balance sheet accounts of the Hitt Company are shown here in alphabetical order:
|
Accounts payable |
$22,400 |
Current taxes payable |
$10,400 |
|
Accounts receivable |
21,500 |
Discount on bonds payable |
6,900 |
|
Accumulated depreciation: buildings |
53,000 |
Equipment |
72,400 |
|
Accumulated depreciation: equipment |
35,100 |
Inventory |
37,200 |
|
Additional paid in capital on |
Land |
30,000 |
|
|
common stock |
24,000 |
Marketable securities (short term) |
6,100 |
|
Additional paid in capital on |
Patents (net) |
9,800 |
|
|
preferred stock |
11,500 |
Preferred stock, $100 par |
21,000 |
|
Allowance for doubtful accounts |
800 |
Retained earnings |
46,200 |
|
Bonds payable (due 2021) |
77,000 |
Salaries payable |
2,000 |
|
Buildings |
144,000 |
Trademarks |
3,700 |
|
Cash |
2,900 |
Unrealized increase in value of |
|
|
Common stock, $10 par |
30,000 |
marketable securities |
1,100 |
Required
1. Prepare the December 31, 2007 balance sheet of the Hitt Company.
2. Compute the working capital and the current ratio.