Faulkner Company Has the Following Selected Accounts After Posting Adjusting

Essay

Faulkner Company has the following selected accounts after posting adjusting entries: $\begin{array}{lr}\text { Accounts Payable } & \$ 45,000 \\\text { Notes Payable, 3-month } & 70,000 \\\text { Accumulated Depreciation-Equipment } & 14,000 \\\text { FlCA Taxes Payable } & 27,000 \\\text { Notes Payable, 5-year, } 8 \% & 30,000 \\\text { Warranty Liability } & 29,000 \\\text { Payroll Tax Expense } & 6,000 \\\text { Interest Payable } & 3,000 \\\text { Mortgage Payable } & 200,000 \\\text { Sales Taxes Payable } & 16,000\end{array}$ Instructions
(a) Prepare the current liability section of Faulkner Company's balance sheet assuming $25000 of the mortgage is payable next year. (List liabilities in magnitude order with largest first.)
(b) Comment on Faulkner 's liquidity assuming total current assets are $450000.