Question

Your answer is partially correct. Try again. Ungenfelter Corporation experienced a fire on December 31, 2017 in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following balances. tudy December 31, 2017 Cash $ 33,000 Accounts receivable (net) 75,500 Inventory 202,000 Accounts payable 54,500 Notes payable 32,000 Common stock, $100 par 389,000 Retained earnings 109,000 December 31, 2016 $ 10.500 127,500 185,000 88,000 58.500 389,000 109,000 Additional information: 1. 2. 3. 4. 5. The inventory turnover is 2,4 times The return on common stockholders' equity is 23%. The company had no additional paid in capital The accounts receivable turnover is 7.7 times. The return on assets is 12.5% Total assets at December 31, 2016, were $592,000. Compute the following for Ungenfelter Corporation (Round answers to decimal places, e.g. 5,275.) 464400 (a) Cost of goods sold for 2017 (b) Net sales (credit) for 2017 781550 (c) Net Income for 2017 (d) Total assets at December 31, 2017

Answer 1

1. Cost of Goods Sold for 2017

Inventory Turnover =2.4

= $202,000 + $ 185,000 / 2 =$ 193,500

2.4 × $ 193,500 = Cost of Goods Sold

= $ 464,400

2. Net Sales ( Credit) for 2017

Accounts Receivable Turnover = 7.7

= $75,500 + $127,500 / 2 = $ 101,500

7.7 × $ 101,500 = Net Sales ( Credit)

Net Sales ( Credit) = $ 781,550

3. Net Income for 2017

Return on common stockholders equity = 23 %

= $ 389,000 + $ 109,000 + $ 389,000 + $ 109,000 /2

= $498,000

.23 × $ 498,000 = Net Sales ( Credit)

$114,540 = Net Sales ( Credit)

4. Return on Asset = 12.5 %

Average Assets =$ 114,540

= $ 114,540 / .125 = $ 916,320

Total Assets ( Dec 31 , 2017 ) + $ 592,000 = $916,320

Total Asset ( Dec 31 2017 ) = ($916,320 × 2 ) - $ 592,000

= $ 1,832,640 - $ 592,000 = $ 1,240,640