Use the information in the following adjusted trial balance for the Wilson Trucking Company. Account Title Cash Accounts receivable office supplies Trucks Accumulated depreciation-Trucks Land Accounts payable Interest payable Long-term notes payable Common stock Retained earnings Dividends Trucking revenue Depreciation expense-Trucks Salaries expense Office supplies expense Interest expense Totals Required A Required B Calculate the current ratio for Wilson Trucking. Debit Numerator $ 8,000 17,500 3,000 172,000 = 85,000 20,000 (a) Calculate the current ratio for Wilson Trucking. (b) Assuming Spalding (a competitor) has a current ratio of 1.5, which company is better able to pay its short-term obligations Complete this question by entering your answers in the tabs below. Credit $ 36,000 Current Ratio 12,000 4,000 58,000 30,000 140,000 23,500 61,000 8,000 12,000 $ 410,000 $ 410,000 Denominator 130,000 Current Ratio Show less A

Use the information in the following adjusted trial balance for the Wilson Trucking Company. Account Title Cash Accounts receivable office supplies Trucks Accumulated depreciation-Trucks Land Accounts payable Interest payable Long-term notes payable Common stock Retained earnings Dividends Trucking revenue Depreciation expense-Trucks Salaries expense Office supplies expense Interest expense Totals Required A Required B Calculate the current ratio for Wilson Trucking. Debit Numerator $ 8,000 17,500 3,000 172,000 = 85,000 20,000 (a) Calculate the current ratio for Wilson Trucking. (b) Assuming Spalding (a competitor) has a current ratio of 1.5, which company is better able to pay its short-term obligations Complete this question by entering your answers in the tabs below. Credit $ 36,000 Current Ratio 12,000 4,000 58,000 30,000 140,000 23,500 61,000 8,000 12,000 $ 410,000 $ 410,000 Denominator 130,000 Current Ratio Show less A

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter12: Financial Statements, Closing Entries, And Reversing Entries

Section: Chapter Questions

Problem 3E

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