Answer:
2018 Balance Sheet
$145,000 Cash
$135,000 Accounts Receivable
$302,000 Inventory
$582,000 TOTAL CURRENT ASSETS
$1,.665,000 Tangible Net Fixed Assets
$630,000 Patents and Copyrights
$2,295,000 TOTAL NONCURRENT ASSETS
$2,877,000 TOTAL ASSETS
$222,000 Accounts Payable
$130,000 Notes Payable
$352,000 TOTAL CURRENT LIABILITIES
$863,000 Long Term Debt
$863,000 TOTAL NONCURRENT LIABILITIES
$1,215,000 TOTAL LIABILITIES
$1,242,000 Retained Earnings
$1,242,000 TOTAL EQUITY
$2,457,000 TOTAL EQUITY + LIABILITIES
Explanation:
Liquidity it's define as the speed of an assets to be converted to cash,
the assets that take less days to buy or to sold are more liquid than others.
Cash it's the assets most liquid then are the Accounts Receivables and Inventories for last, in the middle exist different assets as Equity investments.
Prepaid expenses are not liquid because these accounts doesn't means the company could get cash if not that the company have rights over something.
Section of Current Assets , the criteria is to have a liquidity speed less of one year
Cash
Accounts Receivable
Inventory
Section of Non Current Assets , the criteria is to have a liquidity speed more than one year and are known as fixed assets
Tangible Net Fixed Assets
Patents and Copyrights
Section of Current Liabilities , the criteria is to have a liquidity speed less of one year
Accounts Payable
Notes Payable
Section of Total Equity
Retained Earnings
