E 18-24 Profitability ratio
Comparative balance sheets for Softech Canvas Goods for 2011 and 2010 are shown below. Softech pays no dividends, and instead reinvests all earnings for future growth.
Comparative Balance sheets ($in 000s)
December 31
2011 2010
Assets:
Cash $ 50 $40
Accounts receivable 100 120
Short-term investment 50 40
Inventory 200 140
Property, plant, and equipment (net) 600 550
$1,000 $890
Liabilities and Shareholder’s Equity:
Current liabilities $240 $210
Bonds payable 160 160
Paid-in Capital 400 400
Retained earnings 200 120
$1,000 $890
Required:
1. Determine the return on shareholders' equity for 2011.
2. What does the ratio measure?
Click here for the solution: Comparative balance sheets for Softech Canvas Goods for 2011 and 2010 are shown below
Showing posts with label Balance Sheets. Show all posts
Showing posts with label Balance Sheets. Show all posts
Monday, October 26, 2015
(Surmise Company) The comparative balance sheets for 2011 and 2010 are given below for Surmise Company
P 21-14 Statement of cash flows; indirect method; limited information
The comparative balance sheets for 2011 and 2010 are given below for Surmise Company. Net income for 2011 was $50 million.
Surmise Company
Comparative Balance sheets
December 31, 2011 and 2010
($In millions)
2011 2010
Assets
Cash $45 $40
Accounts receivable 92 96
Less: Allowance for uncollectible accounts (12) (4)
Prepaid expense 8 5
Inventory 145 130
Long-term investment 80 40
Land 100 100
Buildings and equipment 411 300
Less: Accumulated depreciation (142) (120)
Patent 16 17
$743 $604
Liabilities
Account payable $17 $32
Accrued liabilities (2) 10
Notes payable 35 0
Lease liability 111 0
Bonds payable 65 125
Shareholder’s equity
Common Stock 60 50
Paid-in capital-excess of par 245 205
Retained earnings 212 182
$743 $604
Required:
Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2011. Use the indirect method to present cash flows from operating activities because you do not have sufficient information to use the direct method. You will need to make reasonable assumptions concerning the reasons for change in some account balances. A spreadsheet or T-account analysis will be helpful.
Click here for the solution: The comparative balance sheets for 2011 and 2010 are given below for Surmise Company
The comparative balance sheets for 2011 and 2010 are given below for Surmise Company. Net income for 2011 was $50 million.
Surmise Company
Comparative Balance sheets
December 31, 2011 and 2010
($In millions)
2011 2010
Assets
Cash $45 $40
Accounts receivable 92 96
Less: Allowance for uncollectible accounts (12) (4)
Prepaid expense 8 5
Inventory 145 130
Long-term investment 80 40
Land 100 100
Buildings and equipment 411 300
Less: Accumulated depreciation (142) (120)
Patent 16 17
$743 $604
Liabilities
Account payable $17 $32
Accrued liabilities (2) 10
Notes payable 35 0
Lease liability 111 0
Bonds payable 65 125
Shareholder’s equity
Common Stock 60 50
Paid-in capital-excess of par 245 205
Retained earnings 212 182
$743 $604
Required:
Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2011. Use the indirect method to present cash flows from operating activities because you do not have sufficient information to use the direct method. You will need to make reasonable assumptions concerning the reasons for change in some account balances. A spreadsheet or T-account analysis will be helpful.
Click here for the solution: The comparative balance sheets for 2011 and 2010 are given below for Surmise Company
The comparative balance sheets for 2011 and 2010 and the income statement for 2011 are given below for Arduous Company
P 21-11 Prepare a statement of cash flows; direct method
The comparative balance sheets for 2011 and 2010 and the income statement for 2011 are given below for Arduous Company. Additional information from Arduous's accounting records is provided also.
AND SO ON
Additional information from the accounting records:
a. During 2011, $6 million of customer accounts were written off as uncollectible.
b. Investment revenue includes Arduous Company's $6 million share of the net income of Demur Company, an equity method investee.
c. Treasury bills were sold during 2011 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents.
d. A machine originally costing $70 million that was one-half depreciated was rendered unusable by a rare flood. Most major components of the machine were unharmed and were sold for $17 million.
e. Temporary differences between pretax accounting income and taxable income caused the deferred income tax liability to increase by $3 million.
f. The preferred stock of Tory Corporation was purchased for $25 million as a long-term investment.
g. Land costing $46 million was acquired by issuing $23 million cash and a 15%, four-year, $23 million note payable to the seller.
h. A building was acquired by a 15-year capital lease; present value of lease payments, $82 million. i. $60 million of bonds were retired at maturity. j. In February, Arduous issued a 4% stock dividend (4 million shares). The market price of the $5 par value common stock was $7.50 per share at that time.
k. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 million.
Required:
Prepare the statement of cash flows of Arduous Company for the year ended December 31, 2011. Present cash flows from operating activities by the direct method. (A reconciliation schedule is not required.)
Click here for the solution: The comparative balance sheets for 2011 and 2010 and the income statement for 2011 are given below for Arduous Company
The comparative balance sheets for 2011 and 2010 and the income statement for 2011 are given below for Arduous Company. Additional information from Arduous's accounting records is provided also.
AND SO ON
Additional information from the accounting records:
a. During 2011, $6 million of customer accounts were written off as uncollectible.
b. Investment revenue includes Arduous Company's $6 million share of the net income of Demur Company, an equity method investee.
c. Treasury bills were sold during 2011 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents.
d. A machine originally costing $70 million that was one-half depreciated was rendered unusable by a rare flood. Most major components of the machine were unharmed and were sold for $17 million.
e. Temporary differences between pretax accounting income and taxable income caused the deferred income tax liability to increase by $3 million.
f. The preferred stock of Tory Corporation was purchased for $25 million as a long-term investment.
g. Land costing $46 million was acquired by issuing $23 million cash and a 15%, four-year, $23 million note payable to the seller.
h. A building was acquired by a 15-year capital lease; present value of lease payments, $82 million. i. $60 million of bonds were retired at maturity. j. In February, Arduous issued a 4% stock dividend (4 million shares). The market price of the $5 par value common stock was $7.50 per share at that time.
k. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 million.
Required:
Prepare the statement of cash flows of Arduous Company for the year ended December 31, 2011. Present cash flows from operating activities by the direct method. (A reconciliation schedule is not required.)
Click here for the solution: The comparative balance sheets for 2011 and 2010 and the income statement for 2011 are given below for Arduous Company
Wednesday, October 14, 2015
An analysis of comparative balance sheets, the current year’s income statement, and the general ledger accounts of Conard Corp
An analysis of comparative balance sheets, the current year’s income statement, and the general ledger accounts of Conard Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary. Indicate how each item should be classified in the statement of cash flows using the four major classifications listed to the right.
a. Payment of interest on notes payable
b. Exchange of land for patent
c. Sale of building at book value
d. Payment of dividends
e. Depreciation
f. Receipt of dividends on investment in stock
g. Receipt of interest on notes receivable
h. Issuance of capital stock
i. Amortization of patent
j. Issuance of bonds for land
k. Purchase of land
l. Conversion of bonds into common stock
m. Loss on sale of land
n. Retirement of bonds
Click here for the solution: An analysis of comparative balance sheets, the current year’s income statement, and the general ledger accounts of Conard Corp
a. Payment of interest on notes payable
b. Exchange of land for patent
c. Sale of building at book value
d. Payment of dividends
e. Depreciation
f. Receipt of dividends on investment in stock
g. Receipt of interest on notes receivable
h. Issuance of capital stock
i. Amortization of patent
j. Issuance of bonds for land
k. Purchase of land
l. Conversion of bonds into common stock
m. Loss on sale of land
n. Retirement of bonds
Click here for the solution: An analysis of comparative balance sheets, the current year’s income statement, and the general ledger accounts of Conard Corp
Sunday, September 27, 2015
The comparative balance sheets of Nike, Inc. are presented here
E13-5 The comparative balance sheets of Nike, Inc. are presented here.
NIKE, INC.
Comparative Balance Sheets
May 31
($ in millions)
Assets
2007 2006
Current assets $ 8,076 $7,346
Property, plant, and equipment (net) 1,678 1,658
Other assets 934 866
Total assets $10,688 $9,870
Liabilities and Stockholders’ Equity
Current liabilities $ 2,584 $2,612
Long-term liabilities 1,079 973
Stockholders’ equity 7,025 6,285
Total liabilities and stockholders’ equity $10,688 $9,870
Instructions
(a) Prepare a horizontal analysis of the balance sheet data for Nike using 2006 as a base. (Show the amount of increase or decrease as well.)
(b) Prepare a vertical analysis of the balance sheet data for Nike for 2007.
Click here for the solution: The comparative balance sheets of Nike, Inc. are presented here
NIKE, INC.
Comparative Balance Sheets
May 31
($ in millions)
Assets
2007 2006
Current assets $ 8,076 $7,346
Property, plant, and equipment (net) 1,678 1,658
Other assets 934 866
Total assets $10,688 $9,870
Liabilities and Stockholders’ Equity
Current liabilities $ 2,584 $2,612
Long-term liabilities 1,079 973
Stockholders’ equity 7,025 6,285
Total liabilities and stockholders’ equity $10,688 $9,870
Instructions
(a) Prepare a horizontal analysis of the balance sheet data for Nike using 2006 as a base. (Show the amount of increase or decrease as well.)
(b) Prepare a vertical analysis of the balance sheet data for Nike for 2007.
Click here for the solution: The comparative balance sheets of Nike, Inc. are presented here
Friday, September 25, 2015
The comparative balance sheets for 2006 and 2005 are given below for Surmise Company
The comparative balance sheets for 2006 and 2005 are given below for Surmise Company. Net Income for 2006 was $50 million.
Surmise Company Comparative Balance Sheets Dec. 31, 2006 and 2005 ($ in millions)
------------------------2006---------------------2005--------
ASSETS:
Cash $45 $40
Accounts Receivable 92 96
Less: Allowance for Uncollectible accounts (12) (4)
Prepaid expense 8 5
Inventory 145 130
Long term Investment 80 40
Land 100 100
Buildings & Equipments 411 300
less: Accumulated Depreciation (142) (120)
Patent 16 17
Total $743 $604
LIABILITIES:
Accounts Payable $17 $32
Accrued Liabilities (2) 10
Notes payable 35 0
Lease Liability 111 0
Bonds Payable 65 125
SHAREHOLDER"S EQUITY:
Common Stock $60 $50
Paid in Capital - Excess of par 245 205
Retained Earnings 212 182
Total $743 $604
REQUIRED: Prepare the statement of cash flow of Surmise Company for the year ended December 31, 2006. Use the indirect method to present cash flows from operating activities because you do not have sufficient information to use the direct method. You will need to make reasonable assumptions concerning the reasons for changes in some account balances. A spreadsheet or T-account analysis will be helpful.
Click here for the solution: The comparative balance sheets for 2006 and 2005 are given below for Surmise Company
Surmise Company Comparative Balance Sheets Dec. 31, 2006 and 2005 ($ in millions)
------------------------2006---------------------2005--------
ASSETS:
Cash $45 $40
Accounts Receivable 92 96
Less: Allowance for Uncollectible accounts (12) (4)
Prepaid expense 8 5
Inventory 145 130
Long term Investment 80 40
Land 100 100
Buildings & Equipments 411 300
less: Accumulated Depreciation (142) (120)
Patent 16 17
Total $743 $604
LIABILITIES:
Accounts Payable $17 $32
Accrued Liabilities (2) 10
Notes payable 35 0
Lease Liability 111 0
Bonds Payable 65 125
SHAREHOLDER"S EQUITY:
Common Stock $60 $50
Paid in Capital - Excess of par 245 205
Retained Earnings 212 182
Total $743 $604
REQUIRED: Prepare the statement of cash flow of Surmise Company for the year ended December 31, 2006. Use the indirect method to present cash flows from operating activities because you do not have sufficient information to use the direct method. You will need to make reasonable assumptions concerning the reasons for changes in some account balances. A spreadsheet or T-account analysis will be helpful.
Click here for the solution: The comparative balance sheets for 2006 and 2005 are given below for Surmise Company
Thursday, September 24, 2015
An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Gagliano Corp
ACC 560 Week 9 Assignment
E13-2 An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Gagliano Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary.
(a) Payment of interest on notes payable.
(b) Exchange of land for patent.
(c) Sale of building at book value.
(d) Payment of dividends.
(e) Depreciation.
(f) Receipt of dividends on investment in stock.
(g) Receipt of interest on notes receivable.
(h) Issuance of capital stock.
(i) Amortization of patent.
(j) Issuance of bonds for land.
(k) Purchase of land.
(l) Conversion of bonds into common stock.
(m) Loss on sale of land.
(n) Retirement of bonds.
Instructions
Indicate how each item should be classified in the statement of cash flows using these four major classifications: operating activity (indirect method), investing activity, financing activity, and significant noncash investing and financing activity.
Click here for the solution: An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Gagliano Corp
E13-2 An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Gagliano Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary.
(a) Payment of interest on notes payable.
(b) Exchange of land for patent.
(c) Sale of building at book value.
(d) Payment of dividends.
(e) Depreciation.
(f) Receipt of dividends on investment in stock.
(g) Receipt of interest on notes receivable.
(h) Issuance of capital stock.
(i) Amortization of patent.
(j) Issuance of bonds for land.
(k) Purchase of land.
(l) Conversion of bonds into common stock.
(m) Loss on sale of land.
(n) Retirement of bonds.
Instructions
Indicate how each item should be classified in the statement of cash flows using these four major classifications: operating activity (indirect method), investing activity, financing activity, and significant noncash investing and financing activity.
Click here for the solution: An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Gagliano Corp
Sunday, September 20, 2015
Scully Corporation's comparative balance sheets are presented below
E14-11 Scully Corporation's comparative balance sheets are presented below.
SCULLY CORPORATION
Balance Sheets
December 31
2008 2007
Cash $ 4,300 $ 3,700
Accounts receivable 21,200 23,400
Inventory 10,000 7,000
Land 20,000 26,000
Building 70,000 70,000
Accumulated depreciation (15,000) (10,000)
Total $110,500 $120,100
Accounts payable $ 12,370 $ 31,100
Common stock 75,000 69,000
Retained earnings 23,130 20,000
Total $110,500 $120,100
Scully's 2008 income statement included net sales of $100,000, cost of goods sold of $60,000, and net income of $15,000.
Instructions
Compute the following ratios for 2008. (a) Current ratio. (b) Acid-test ratio. (c) Receivables turnover. (d) Inventory turnover. (e) Profit margin. (f) Asset turnover. (g) Return on assets. (h) Return on common stockholders' equity. (i) Debt to total assets ratio.
Click here for the solution: Scully Corporation's comparative balance sheets are presented below
SCULLY CORPORATION
Balance Sheets
December 31
2008 2007
Cash $ 4,300 $ 3,700
Accounts receivable 21,200 23,400
Inventory 10,000 7,000
Land 20,000 26,000
Building 70,000 70,000
Accumulated depreciation (15,000) (10,000)
Total $110,500 $120,100
Accounts payable $ 12,370 $ 31,100
Common stock 75,000 69,000
Retained earnings 23,130 20,000
Total $110,500 $120,100
Scully's 2008 income statement included net sales of $100,000, cost of goods sold of $60,000, and net income of $15,000.
Instructions
Compute the following ratios for 2008. (a) Current ratio. (b) Acid-test ratio. (c) Receivables turnover. (d) Inventory turnover. (e) Profit margin. (f) Asset turnover. (g) Return on assets. (h) Return on common stockholders' equity. (i) Debt to total assets ratio.
Click here for the solution: Scully Corporation's comparative balance sheets are presented below
Friday, September 18, 2015
(Week 5 Assignment ACC 291) Here are comparative balance sheets for Taguchi Company
ACC 291 Week 5 Assignment
E13-8 Here are comparative balance sheets for Taguchi Company.
TAGUCHI COMPANY
Comparative Balance Sheets
December 31
Assets 2011 2010
Cash $ 73,000 $ 22,000
Accounts receivable 85,000 76,000
Inventories 170,000 189,000
Land 75,000 100,000
Equipment 260,000 200,000
Accumulated depreciation (66,000) (32,000)
Total $597,000 $555,000
Liabilities and Stockholders’ Equity
Accounts payable $ 39,000 $ 47,000
Bonds payable 150,000 200,000
Common stock ($1 par) 216,000 174,000
Retained earnings 192,000 134,000
Total $597,000 $555,000
Additional information:
1. Net income for 2011 was $103,000.
2. Cash dividends of $45,000 were declared and paid.
3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.
4. Common stock was issued for $42,000 cash.
5. No equipment was sold during 2011, but land was sold at cost.
Instructions
Prepare a statement of cash flows for 2011 using the indirect method.
TAGUCHI COMPANY
Comparative Balance Sheets
December 31
Assets 2011 2010
Cash $ 73,000 $ 22,000
Accounts receivable 85,000 76,000
Inventories 170,000 189,000
Land 75,000 100,000
Equipment 260,000 200,000
Accumulated depreciation (66,000) (32,000)
Total $597,000 $555,000
Liabilities and Stockholders’ Equity
Accounts payable $ 39,000 $ 47,000
Bonds payable 150,000 200,000
Common stock ($1 par) 216,000 174,000
Retained earnings 192,000 134,000
Total $597,000 $555,000
Additional information:
1. Net income for 2011 was $103,000.
2. Cash dividends of $45,000 were declared and paid.
3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.
4. Common stock was issued for $42,000 cash.
5. No equipment was sold during 2011, but land was sold at cost.
Instructions
Prepare a statement of cash flows for 2011 using the indirect method.
Click here for the solution: (Week 5 Assignment ACC 291) Here are comparative balance sheets for Taguchi Company
Wednesday, September 2, 2015
The current sections of Bellinham Inc.'s balance sheets at December 31, 2009 and 2010, are presented here
The current sections of Bellinham Inc.'s balance sheets at December 31, 2009 and 2010, are presented here.
Bellinham's net income for 2010 was $153,000. Depreciation expense was $24,000.
2010 2009
Current assets
Cash $105,000 $99,000
Accounts receivable 110,000 89,000
Inventory 158,000 172,000
Prepaid expenses 27,000 22,000
Total current assets $400,000 $382,000
Current liabilities
Accrued expenses payable $15,000 $5,000
Accounts payable 85,000 92,000
Total current liabilities $100,000 $97,000
Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2010, using the indirect method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1. If amount decreases cash flow, use either a negative sign preceding the number eg -45 or parentheses eg (45).)
Click here for the solution: The current sections of Bellinham Inc.'s balance sheets at December 31, 2009 and 2010, are presented here
Bellinham's net income for 2010 was $153,000. Depreciation expense was $24,000.
2010 2009
Current assets
Cash $105,000 $99,000
Accounts receivable 110,000 89,000
Inventory 158,000 172,000
Prepaid expenses 27,000 22,000
Total current assets $400,000 $382,000
Current liabilities
Accrued expenses payable $15,000 $5,000
Accounts payable 85,000 92,000
Total current liabilities $100,000 $97,000
Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2010, using the indirect method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1. If amount decreases cash flow, use either a negative sign preceding the number eg -45 or parentheses eg (45).)
Click here for the solution: The current sections of Bellinham Inc.'s balance sheets at December 31, 2009 and 2010, are presented here
The balance sheets for Rainey Company showed the following information
The balance sheets for Rainey Company showed the following information. Additional information concerning transactions and events during 2010 are presented below.
Rainey Company
Balance Sheet
December 31
2010 2009
Cash $ 30,900 $ 10,200
Accounts receivable (net) 43,300 20,300
Inventory 35,000 42,000
Long-term investments 0 15,000
Property, plant & equipment 236,500 150,000
Accumulated depreciation (37,700) (25,000)
$308,000 $212,500
Accounts payable $ 17,000 $ 26,500
Accrued liabilities 21,000 17,000
Long-term notes payable 70,000 50,000
Common stock 130,000 90,000
Retained earnings 70,000 29,000
$308,000 $212,500
Additional data:
1 Net income for the year 2010, $76,000.
2 Depreciation on plant assets for the year, $12,700.
3 Sold the long-term investments for $28,000 (assume gain or loss is ordinary).
4 Paid dividends of $35,000.
5 Purchased machinery costing $26,500, paid cash.
6 Purchased machinery and gave a $60,000 long-term note payable.
7 Paid a $40,000 long-term note payable by issuing common stock.
Instructions
Prepare a statement of cash flows (using the indirect method) for 2010 for Rainey Company.
Click here for the solution: The balance sheets for Rainey Company showed the following information
Rainey Company
Balance Sheet
December 31
2010 2009
Cash $ 30,900 $ 10,200
Accounts receivable (net) 43,300 20,300
Inventory 35,000 42,000
Long-term investments 0 15,000
Property, plant & equipment 236,500 150,000
Accumulated depreciation (37,700) (25,000)
$308,000 $212,500
Accounts payable $ 17,000 $ 26,500
Accrued liabilities 21,000 17,000
Long-term notes payable 70,000 50,000
Common stock 130,000 90,000
Retained earnings 70,000 29,000
$308,000 $212,500
Additional data:
1 Net income for the year 2010, $76,000.
2 Depreciation on plant assets for the year, $12,700.
3 Sold the long-term investments for $28,000 (assume gain or loss is ordinary).
4 Paid dividends of $35,000.
5 Purchased machinery costing $26,500, paid cash.
6 Purchased machinery and gave a $60,000 long-term note payable.
7 Paid a $40,000 long-term note payable by issuing common stock.
Instructions
Prepare a statement of cash flows (using the indirect method) for 2010 for Rainey Company.
Click here for the solution: The balance sheets for Rainey Company showed the following information
Saturday, August 1, 2015
Presented below is a condensed version of the comparative balance sheets for Sondergaard Corporation for the last two years at December 31
E5-15 (Preparation of a Statement of Cash Flows) Presented below is a condensed version of the comparative balance sheets for Sondergaard Corporation for the last two years at December 31.
2010 2009
Cash $157,000 $ 78,000
Accounts receivable 180,000 185,000
Investments 52,000 74,000
Equipment 298,000 240,000
Less: Accumulated depreciation (106,000) (89,000)
Current liabilities 134,000 151,000
Capital stock 160,000 160,000
Retained earnings 287,000 177,000
Additional information:
Investments were sold at a loss (not extraordinary) of $7,000; no equipment was sold; cash dividends paid were $50,000; and net income was $160,000.
Instructions
(a) Prepare a statement of cash flows for 2010 for Sondergaard Corporation.
(b) Determine Sondergaard Corporation’s free cash flow.
Click here for the solution: Presented below is a condensed version of the comparative balance sheets for Sondergaard Corporation for the last two years at December 31
2010 2009
Cash $157,000 $ 78,000
Accounts receivable 180,000 185,000
Investments 52,000 74,000
Equipment 298,000 240,000
Less: Accumulated depreciation (106,000) (89,000)
Current liabilities 134,000 151,000
Capital stock 160,000 160,000
Retained earnings 287,000 177,000
Additional information:
Investments were sold at a loss (not extraordinary) of $7,000; no equipment was sold; cash dividends paid were $50,000; and net income was $160,000.
Instructions
(a) Prepare a statement of cash flows for 2010 for Sondergaard Corporation.
(b) Determine Sondergaard Corporation’s free cash flow.
Click here for the solution: Presented below is a condensed version of the comparative balance sheets for Sondergaard Corporation for the last two years at December 31
Tuesday, July 7, 2015
Use your knowledge of balance sheets to fill in the missing amounts
Use your knowledge of balance sheets to fill in the missing amounts:
ASSETS
Cash $50,000
Accounts receivable 80,000
Inventory 100,000
Total current assets ---------
Gross plant and equipment --------
Less: accumulated depreciation 130,000
Net plant and equipment 600,000
Total assets
LIABILITIES
Accounts payable $12,000
Notes payable 50,000
Total current liabilities _____
Long-term debt _____
Total liabilities ------
Common stock ($1 par, 100,000 shares)_____
Paid-in capital 250,000
Retained earnings 200,000
Total stockholders' equity _____
Total liabilities and equity 830,000
Click here for the solution: Use your knowledge of balance sheets to fill in the missing amounts
ASSETS
Cash $50,000
Accounts receivable 80,000
Inventory 100,000
Total current assets ---------
Gross plant and equipment --------
Less: accumulated depreciation 130,000
Net plant and equipment 600,000
Total assets
LIABILITIES
Accounts payable $12,000
Notes payable 50,000
Total current liabilities _____
Long-term debt _____
Total liabilities ------
Common stock ($1 par, 100,000 shares)_____
Paid-in capital 250,000
Retained earnings 200,000
Total stockholders' equity _____
Total liabilities and equity 830,000
Click here for the solution: Use your knowledge of balance sheets to fill in the missing amounts
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