The following schedule of assets and liabilities relates to Kona Enterprises. Their year-end is 28February.Income received in advanceInput VATOutput VATPrepaid expensesAccumulated depreciation: EquipmentEquipmentFixed deposit (maturing on 31 May 2023)Savings accountBank overdraftAccrued expensesAccrued incomeTrade receivablesTrading inventoryLand and BuildingsMortgage loan: Vida BankTrade payables20222 0003 0006 500750030 00090 00040 00013 500016 0009 50034 000105 000950 000450 000150 0002023Calculate the level of working capital (total current assets) as at the financial yearsended 28 February 2022 and 28 February 2023.Calculate the total for current liabilities as at the financial year ending 28 February2022 and 2023.10003 50011 5005 00035 000100 00040 00018 5004 50010 50012 00041 500115 000950 000380 000170 000 Calculate the net working capital as at the two dates for statement of financialposition, as well as the current ratio for each year. Comment on the company'sliquidity position and the related risk it poses to potential financiers.Round all answers to two decimal places.

Current Asset - Current assets are the assets Which are expected to be realize or converted into…

The following schedule of assets and liabilities relates to Kona Enterprises. Their year-end is 28 February. Income received in advance Input VAT Output VAT Prepaid expenses Accumulated depreciation: Equipment Equipment Fixed deposit (maturing on 31 May 2023) Savings account Bank overdraft Accrued expenses Accrued income Trade receivables Trading inventory Land and Buildings Mortgage loan: Vida Bank Trade payables 2022 2 000 3 000 6500 7500 30 000 90 000 40 000 13 500 0 16 000 9500 34 000 105 000 950 000 450 000 150 000 2023 1000 3 500 11 500 5 000 35 000 100 000 40 000 18 500 4 500 10 500 12 000 41 500 115 000 950 000 380 000 170 000

The following schedule of assets and liabilities relates to Kona Enterprises. Their year-end is 28 February. Income received in advance Input VAT Output VAT Prepaid expenses Accumulated depreciation: Equipment Equipment Fixed deposit (maturing on 31 May 2023) Savings account Bank overdraft Accrued expenses Accrued income Trade receivables Trading inventory Land and Buildings Mortgage loan: Vida Bank Trade payables 2022 2 000 3 000 6500 7500 30 000 90 000 40 000 13 500 0 16 000 9500 34 000 105 000 950 000 450 000 150 000 2023 1000 3 500 11 500 5 000 35 000 100 000 40 000 18 500 4 500 10 500 12 000 41 500 115 000 950 000 380 000 170 000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 10MC

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