Question

Required information [The following information applies to the questions displayed below.) Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2017 and reports a balance sheet at December 31, 2016 as follows: $ 46,200 260,000 11,250 32,250 $349,700 Endless Mountain Company Balance Sheet December 31, 2016 Assets Current assets: Cash Accounts receivable (net) Raw materials inventory (4,500 yards) Finished goods inventory (1,500 units) Total current assets Plant and equipment: Buildings and equipment Accumulated depreciation Plant and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 900,000 (292,000) 608,000 $957,700 $158,000 $ 419,800 379,900 799,700 $957,700

Please solve for answers with RED X in image Required 2 c-e, use 365 days in a year. Please solve for equity multiplier in Required 3 b. THE BALANCE SHEET IS CORRECT. I VERIFIED IT WITH THE SOFTWARE'S CHECK MY WORK PROBLEM. PLEASE SOLVE.

USE THE FOLLOWING INFORMATION TO HELP:

Answer 1

2c. Inventory Turnover = Cost of Goods Sold / Average Inventory
= $1998724 / 49303 = 40.54
Average Inventory = ($32250+11250+42356+12750)/2 = $49303

2d. Average Sale period = 365 / 40.54 = 9.00 days

2e. Operating Cycle = 29.48+9.00 = 38.48 days

3b. Equity Multiplier = Average Total Assets / Average Total Equity
= $1014025 / 899892 = 1.13

Average total assets = (1070349+957700)/2 = 1014025

Average total equity = (1000084+799700)/2 = 899892