Benton Office Supplies-Use the following information to answer questions 8–12

Benton Office Supplies-Use the following information to answer questions 8–12

Benton Office Supplies
Balance Sheet
December 31, 2007

Cash $ 65,000                                                Accounts Payable $ 70,000
Prepaid Insurance 30,000                                Salaries Payable 10,000
Accounts Receivable 50,000                           Mortgage Payable 80,000
Inventory 70,000                                             Total Liabilities $160,000
Land held for investment 75,000
Land 90,000
Building $100,000                                           Common Stock $120,000
Less Accumulated Retained Earnings 250,000
Depreciation (20,000) 80,000                          Total stockholders’ equity $370,000
Trademark 70,000 Total Liabilities and
Total Assets $530,000                                                 Stockholders’ Equity $530,000

8. The total dollar amount of assets to be classified as current assets is
a. $290,000.
b. $215,000.
c. $180,000.
d. $145,000.

9. The total dollar amount of assets to be classified as property, plant, and equipment is
a. $320,000.
b. $170,000.
c. $245,000.
d. $190,000.

10. The total dollar amount of assets to be classified as investments is
a. $0.
b. $150,000.
c. $75,000.
d. $180,000.

11. The total amount of working capital is
a. $135,000.
b. $295,000.
c. $75,000.
d. $60,000.

12. The current ratio is
a. 1.94 : 1.
b. 1.57 : 1.
c. 3.14 : 1.
d. 2.69 : 1.

                                                CLICK HERE FOR THE SOLUTION