Problem 2.

a) assets 95000
liability 40000
owner's equity 55000

b) assets 65000
owner's equity 40000
liability 25000

c) owner's equity 55000 current assets 25000

liabilities 40000 non current assets 70000
95000 95000

d) current ratio =

e) owner's equity 70000 non current assets 60000

liabilities 25000 current assets 35000

95000 95000

current ratio= 1.4

 Problem 2.2

Balance Sheet
capital stock 1000000 Building 1120000
retained earnings 620000 (-)accumulated dep. 538000 582000

accounts payable 241000 equipment 761000

accrued expense 107000 (-)accumulated dep. 386000 375000
bonds payable 700000
notes payable 200000 land 230000
estimated tax liab. 125000 accounts receviable 505000
cash 89000
inventory 513000
investment 320000
marketable securities 379000

2993000 2993000
 Problem 2.3

A L E A L I A L
cash capital depriciatioinventory creditors sales debtors dividends
100000 100000 8500 7200 7200
-25000
-15900 15900
9400 9400
-4500
3500 -3500
-3000 3000
59600 100000 8500 20800 9400 7200 3700 3000

assets 84100
liability 12400
owner's eq 100000