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Accounting Equation

I need help with the following accounting problem:

On 12/31/05, Owners' claims to Assets were $300,000, total Liablitlies were 75% of total Assets, Current Assets were 50% of Long Term Assets, and Working Capital was $250,000/ During 2005, The following equity transactions occurred: Reported Net Income Loss $80,000, declared and paid Dividends $20,000, Issued Common Stock for $50,000, and purchased shares of Common Stock for treasury $10,000.

Need to know Net Assets at 1/1/05, Creditiors' claims to Assets at 12/31/05, Current Assets at 12/31/05 and Long Term Liabilities at 12/31/05.

Please help--only clue given is Current Ratio is 2.667 (rounded to 3 places)

(I know Current Ratio is Current Assets divided by Current Liabilities and that Working Captial is Current Assets minus Current Liabilities and Assets=Liabilities + Equity............. I'm stuck on how to get started)

Solution Preview

On 12/31/05 Equity is 300,000. Liabilites are 75% of Total Assets and Total Assets = Liabilities+Equity. So Liabilities are 75% of Total Liabilities+Equity. We get the following equation
Liab=.75 (300,000+Liab). This gives Liabilities ...

Solution Summary

The solution explains how to calculate ending balance of assets and liabilities given the opening balance

$2.19