Answer:

retained earnings 860

accounts receivable 250

supplies 150

salaries payable 150

equipment 1500

Explanation:

860

250

150

150

+1500

In this question, we are asked to maintain the balance sheet and calculate the current ratio.

The T shape Balance sheet for the same is given.

GIVEN: The particulars available for Z and X

TO FIND T shape Balance Sheet.

SOLUTION:

                      BALANCE SHEET OF Z AND X PVT.LTD                                          

LIABILITIES                       AMOUNT            ASSETS                 AMOUNT      

Retained earnings            860       Accounts receivable     250

Salaries payable               150     Supplies                         150

Accounts Payable             540      Equipment                     150

                                                         Unearned Revenue       200

                                                           Cash                               550

                                                          Prepaid Insurance         300

                                                           Common stock              1000

Current Ratio-  [tex]\frac{Current Asset}{Current Liabilities}[/tex]

                    = [tex]\frac{550}{540}[/tex]

                      = 1.018

• A liquidity ratio called the current ratio assesses a company's capacity to settle short-term debts or those that are due within a year.
• It explains to investors and analysts how a business can use its present assets to the fullest extent possible to pay down its current liabilities and other payables.

#SPJ2