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Current Liabilities and Ratios Several accounts that appeared on Spring's 2017 balance sheet are as...

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Accounting

Current Liabilities and Ratios

Several accounts that appeared on Spring's 2017 balance sheet are as follows:

Accounts Payable $74,000 Equipment $950,000
Marketable Securities 40,000 Taxes Payable 15,000
Accounts Receivable 35,600 Retained Earnings 250,000
Notes Payable, 12%, due in 60 days 20,000 Inventory 165,000
Capital Stock 1,150,000 Allowance for Doubtful Accounts 20,000
Salaries Payable 10,000 Land 600,000
Cash 65,000

Required:

1. Prepare the Current Liabilities section of Spring's 2017 balance sheet.

Spring
Partial Balance Sheet
As Of December 31, 2017
Current liabilities:
$
Total current liabilities $

2. Compute Spring's working capital.

$_____________

3. Compute Spring's current ratio. Round your answer to one decimal place.

______________ : 1

What does this ratio indicate about Springs condition?

It seems that Spring has (Sufficient/Insufficient) ___________ current assets to meet its short-term obligations.

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