Current Ratios, Trial Balances, Net Income

Using the following balance sheet and income statement data, what is the current ratio?
Current assets $14,000 Net income $24,000
Current liabilities 8,000 Stockholders' equity 42,000
Average assets 80,000 Total liabilities 18,000
Total assets 60,000
Average common shares outstanding was 10,000.

Answer:
1.75 : 1
1.6 : 1
0.57 : 1
3.3 : 1

Use the following data to calculate the current ratio.

Eddy Auto Supplies
Balance Sheet
December 31, 2012
Cash $50,000 Accounts Payable $55,000
Prepaid Insurance 30,000 Salaries Payable 10,000
Accounts Receivable 40,000 Mortgage Payable 90,000
Inventory 70,000 Total Liabilities $155,000
Land held for Investment 80,000
Land 75,000
Buildings $110,000 Common Stock $120,000
Less Accumulated Retained Earnings 250,000
Depreciation (20,000) 90,000 Total Stockholders' Equity $370,000
Trademarks 70,000 Total Liabilities and
Total Assets $525,000 Stockholders' Equity $525,000

Answer:
1.85 : 1.
2.92 : 1.
3.45 : 1.
1.38 : 1.

Winrow Company showed the following balances at the end of its first year: What did Winrow Company show as total credits on its trial balance?

Cash $9,000
Prepaid insurance 500
Accounts receivable 2,500
Accounts payable 2,000
Notes payable 3,000
Common stock 5,000
Dividends 500
Revenues 15,000
Expenses 12,500

Answer:
$25,500
$25,000
$24,500
$26,000

Based on the account balances below, what is the total of the debit and credit columns of the adjusted trial balance?

Service revenue $3,300 Equipment $6,400
Cash 1,525 Prepaid insurance 1,225
Unearned revenue 5,320 Depreciation expense 640
Salary expense 1,050 Accum. depreciation 1,280
Common stock 390 Retained earnings 550

Answer:
$9,150
$10,840
$9,560
$10,430

The following is selected information from L Corporation for the fiscal year ending October 31, 2011.

Cash received from customers $300,000
Revenue earned 370,000
Cash paid for expenses 170,000
Cash paid for computers on November 1, 2010 that will
be used for 3 years 48,000
Expenses incurred including any depreciation 216,000
Proceeds from a bank loan, part of which was used to
pay for the computers 100,000

Based on the accrual basis of accounting, what is L Corporation's net income for the year ending October 31, 2011?

Answer:
$184,000
$154,000
$152,000
$170,000

Given the following adjusted trial balance: Net income for the year is:

Debit Credit
Cash &1,562
Accounts receivable 2,098
Inventory 3,124
Prepaid rent 86
Property, plant & equipment 300
Accumulated depreciation 52
Accounts payable 82
Unearned revenue 122
Common stock 206
Retained earnings 6,610
Service revenue 268
Interest revenue 56
Salary expense 160
Travel expense 66
Total $7,396 $7,396

Answer:
$98
$270
$324
$496