Working Capital and Current Ratio
Using the following information, compute (1) working capital and (2) current ratio.
|
Deferred sales revenue |
$ 900 |
|
Accounts payable |
1,100 |
|
Accounts receivable |
1,750 |
|
Cash |
400 |
|
Sales |
10,000 |
|
Accrued wages payable |
250 |
|
Sales returns and allowances |
700 |
|
Bonds payable (to be repaid in 6 months) |
1,000 |
|
Bonds payable (to be repaid in 5 years) |
4,000 |