Use the following ratios to determine the missing balance sheet amounts as of December 31. Each formula must include at least one of the ratios.
The company's current ratio is: 4.15
The company's acid-test ratio is: 2.77
The company's debt to equity ratio is: 0.38
Richards Publishing Company
Balance Sheet
At December 31
Assets
Current assets:
Cash: $60,000
Short-term investments: $80,000
Accounts receivable:
Other current assets:
Total current assets:
Property, plant, and equipment:
Equipment: $210,000
Accumulated depreciation: $50,000
Net property, plant, and equipment:
Intangible assets:
Copyrights: $20,000
Total assets: $180,000
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable: $60,000
Interest payable: $5,000
Total current liabilities: $65,000
Long-term liabilities:
Notes payable (due in 3 years): $60,000
Total liabilities:
Shareholders' equity:
Common stock: $200,000
Retained earnings: $125,000
Total shareholders' equity:
Total liabilities and shareholders' equity: $325,000