Question

ILI UI JUU ULSR. 2. Read All the Questions carefully before attempting the answers. 3. Solve the answers on the sheets provided. 4. Use your own calculator, sharing of calculators will not be allowed. 5. No questions will be entertained during the Midterm. Choose any 3 Questions Financial Data for Swatch Co. shoes December 31, 2018 Inventory $206.250 Long-term debt 300,000 Interest expense 5.000 Accumulated depreciation 442.500 Cash 180.000 Net sales (all credit) 1.500.000 Common stock 800,000 Accounts receivable 225.000 Operating expenses 525.000 Notes payable-current 187.500 Cost of goods sold 937.500 Plant and equipment 1.312,500 Accounts payable 168,750 Retained earnings-current-year 25000 Federal income taxes 5.750 Question 1: i. Calculate the following: a. Current Assets b. Current Liabilities c. Operating Profit d. Net Profil e. Total Assets (1+1+1+1+1=5 Marks)

Answer 1

1) Current assets

Inventory	206250
Cash	180000
Account receivable	225000
Total current assets	611250

2) Current liabilities

Account payable	168750
Notes payable (Current)	187500
Total Current liabilities	356250

3) Operating profit = 1500000-937500-525000 =37500

4) Net profit = 37500-5000-5750 = 26750

5) Total Assets = 611250+1312500-442500 = 1481250