1. N&R Associate
Rosaline Nchang

2. Loan & Terms Principal: $25000 loan Interest Rate: 10%
Duration: 2years
First payment: 07/01/15
Payment Amt: $10000
Current Ratio: Current Assets
Current Liabilities
Quick Ratio: Current Assets-Prepaid
Working Capital: $10000
Min. Current Ratio: 1.8
Min. Quick Ratio: 1.6
If terms are not met, loan will be refinance at 15%
Working Capital: Current Assets-Current Liabilities

3. Original Data
Before Balance Sheet

4. Adjusting Entries Impact Balance Sheet Increase in AR by $1800
Decrease in construction Supplies
Decrease in Prepaid Insurance
Increase in Accumulated. Depreciation for both Equipment and Truck.
Increase in AP
Increase in Interest Payable.
INCOME
Increase in Service Revenue
Increase Supplies Expense
Increase in prepaid expense
Increase in interest expense
Increase in Dep. Expense for both Equipment and Truck.

5. After Adjustment
Adjusted

6. Suggestions Increase cash sales to increase current assets
To increase working capital and current ratio to the amount needed, $10,000 and 1.8:1, you need to contribute at least $2,000 from your pocket to pay off part of your accounts payable.

7. Suggestion 1 (Increase cash sales)

8. Suggestion 2 (Paid Accounts Payable)