Question

​(Working with an income statement and balance sheet​)

Prepare a balance sheet and income statement for Kronlokken Company from the scrambled list of items shown in the popup​ window,

Depreciation expense   66,000
Cash   225,000
Long-term debt   334,000
Sales   573,000
Accounts payable   102,000
General and administrative expenses   79,000
Buildings and equipment   895,000
Notes payable   75,000
Accounts receivable   153,000
Interest expense   4,750
Accrued operating expenses   7,900
Common stock   289,000
Cost of goods sold   297,000
Inventory   99,300
Taxes   50,500
Accumulated depreciation   -263,000
Prepaid expenses   14,500
Taxes payable   53,000
Retained earnings   262,900

.

a. What is the​ firm's net working capital and debt​ ratio? 

c. Interpret your findings.

Answer 1