Answers
1 | |||
(a) | Revenue to report for the month = 1,500,000 | ||
(1,575,000/1.05) | |||
(b) | Account Titles and Explanation | Debit | Credit |
Accounts Receivable | 1,575,000 | ||
Sales Revenue | 1,500,000 | ||
Sales Taxes Payable | 750,000 | ||
2 | Working Capital | $4,890 | million |
(Current Assets - Current Liabilities) | |||
($16,890 – $12,000) | |||
Current ratio | 1.41 | :1 | |
(Current Assets/Current Liabilities) | |||
($16,890/$12,000) | |||
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