Instructions: Using the line items given, create a Balance Sheet for HD Chocolate for December 31, 2019. Do not close the window when you have completed the Balance Sheet, (you will have two windows open at the same time). From the Balance Sheet you have created answer the questions on the quiz.
Answer the following questions concerning the Balance Sheet you have just completed (please show your work):
1) What is the amount of the total current assets?
2) What is the amount of the Total Accounts Receivable?
3) Where would you look to determine HD Chocolate’s inventory valuation method?
4) How do we determine if an asset is current?
5) If COGS is $2103, and 2018 ending inventory is $4700, what is the Inventory turnover rate?
6) What does the inventory turnover rate reveal and how is it used in decision making?