Question

13 During 2022, Phelps Corporation reported not sales of $2.500.000 not income of 31,320,000, and depreciation pense of $80.000 Phelps also reported beginning total assets of $1,000,000 onding total assets of $1.500.000 plant assets of SB00.000. and accumulated depreciation of $500.000 Phelps's assol turnover is a 1.3 times b. 11 times C 1.7 times d 2.0 times 14. Trademarks are generally shown on the balance sheet under . a Intangibles b. Investments c Property. Plant, and Equipment d. Current Assets 15. A company has the following assets Buildings and Equipment, less accumulated depreciation of $4,000,000 Copyrights Patents $23,000,000 1,500,000 3,000,000 5,000,000 Land The total amount reported under Property, Plant, and Equipment would be a $32,500,000 b. $27,000,000 $29,500,000 d $28,000,000

please answer 13,14,15

Answer 1

13. Option (d) is correct

Assets turnover ratio = Net Sales / Average total assets

where, Average total assets = Beginning assets + Ending assets / 2

So, Average assets = ($1000000 + $1500000) / 2 = $2500000 / 2 = $1250000

Net sales = $2500000

Now, putting these values in the above formula, we get,

Assets turnover ratio = $2500000 / $1250000  = 2 times

14. Option (a) is correct

Trademarks, being the assets without physical presence, are generally shown on the balance sheet under intangibles

15. Option (d) is correct

In the property, plant & equipment, only buildings & equipment & land will be taken. Copyrights and Patents, being assets without physical presence are taken under intangible assets. So, total property plant & equipment is:

Property, plant & equipment = Land + Net Buildings and equipment

Property plant & equipment = $5000000 + $23000000 = $28000000