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Create your own Microst Excel worksheet and format it to answer your questions., so what are your thoughts on this.

Balanced Books Bookkeeping

Jessica and David are student interns at Balanced Books Bookkeeping. They have taken several business math and accounting classes and are now applying what they have learned to real-life situations. They enjoy their internship, but they are sometimes surprised by the assignments they are given. Luckily, they work together, so they share the assignments and learn from each other. Their most recent assignment is to take a listing of accounts provided by one of Balanced Books' clients and turn them into a balance sheet and income statement. David suggests that their client might appreciate it if they also performed a vertical analysis of each statement. Jessica suggests that they should also compute the current ratio and the acid-test ratio.

· 1. Create the financial statements for December 31, 2011, depict them in vertical format, and compute the current and acid test ratios.

Account title	Amount
Cash	$4,000
Depreciation	2,000
Carlton, equity	34,500
Cost of goods sold	85,000
Rent expense	15,000
Wages payable	1,500
Utilities	6,500
Miscellaneous expenses	1,500
Accounts payable	$3,500
Merchandise inventory	15,000
Accounts receivable	6,000
Net sales	120,000
Insurance payable	500
Equipment	15,000
Wages	8,000