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Question: gander inc balance sheet as of december 31 2018 cash...

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GANDER, INC.
Balance Sheet

As of December 31, 2018

Cash

$62,106

Accounts payable

$44,616

Accounts receivable

$24,948

Notes payable

$46,200

Inventories

$130,360

Interest payable

$2,310

Plant assets (net)

$150,000

Common stock

$250,000

Retained earnings

$24,288

Total Assets

$367,414

Total Liabilities & Equity

$367,414

During 2018, the following occurred:

  1. Customer sales on account $400,000.
  2. Received payments from customers in cash $380,000.
  3. Purchased merchandise on credit $220,000.
  4. Paid cash to vendors $230,000.
  5. Costs related to merchandise sold $170,000.
  6. Operating expenses were paid in cash $80,000.
  7. Interest paid on the note in cash $10,000.

There is additional information to consider. The note payable was issued on June 30, 2018, and is due in two years on June 30, 2020. Interest in the amount of 10% is paid annually on June 30th. Depreciation on the plant assets for the year is $20,000. The original cost of the plant assets was $300,000.

Prepare a classified balance sheet for 2018. Calculate the current ratio and the debt to equity ratio.

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