The following financial information is available for Maxim Enterprises Limited for the year ended December 31, 2018:
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a. |
The acid-test ratio is 1.5 to 1. |
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b. |
Accounts receivable is $3,000, which is one-half of the quick assets, one-third of the current assets, and twice the amount of property, plant, and equipment at carrying amount. |
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c. |
Notes payable is a long-term liability; it is four times the dollar amount of the short-term investments. |
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d. |
Total shareholders’ equity is equal to the working capital, and common shares are 150% of the dollar amount of the retained earnings. |
Required: Using this information, prepare the company’s balance sheet at December 31, 2018. Assume that other than retained earnings, there are no additional accounts.
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