Goblin Company, has the following account balances at December 31, 2012.
|
Notes payable ($60,000 due after 12/31/13) |
$100,000 |
|
Unearned service revenue |
70,000 |
|
Other long term debt ($90,000 due in 2013) |
250,000 |
|
Salaries and wages payable |
32,000 |
|
Accounts payable |
63,000 |
In addition, Goblin is involved in a lawsuit. Legal counsel feels it is probable Goblin will pay damages of $85,000 in 2013.
(a) Prepare the current liability section of Goblin’s 12/31/12 balance sheet.
(b) Goblin’s current assets are $570,000. Compute Goblin’s working capital and current ratio.