Question

jv9CX12W44HCc_YvRR-UN/edit stedit was seconds ago • BI U A IEE - E - EE X Amazing Company began operations on January 1, 2015, and is now in its fourth year of operations. It is a retail sales company with a large amount of online sales. The adjusted trial balance as of December 31, 2019 appears below, along with prior year balance sheet data and some additional transaction data for 2018. AMAZING COMPANY Adjusted Trial Balance 12/31/2019 Account The 5 $ 2019 Most Tre Balance Debit Credit 120,000 55,000 5,000 35,000 50.000 59,000 $ 24.000 12,200 2018 Post-Closing Trial Balance Deble Credit 125,500 35,000 6,000 15.600 47,000 21,000 16.000 16,800 2,700 4.000 12.100 160,000 38,500 Cash Accounts Receivable Prepaid Insurance Inventory Office Equipment Machinery & Tools Accumulated Depreciation Accounts Payable Salaries Payable Sales Tax Payable Note Payable-Long Term Common Stock, 510 par Retained Earnings Dividends Sales Revenue Cost of Goods Sold Rent Expense Salaries Expense Insurance Expense Legal Fees Depreciation pense Interest Expense income Tax Expense 2.500 2,000 23.000 240,000 38.600 10,000 240,000 142.600 20,000 48,000 11,800 9.200 8.000 1.800 3.000 582.400$ $ 582.400 250.200 250.200 Transaction Data for 2018 Note these transactions were included in the trial balance numbers above.) Cash paid for purchase of office equipment S 6,000 Cash paid for purchase of tools 15.000 Acquisition of Machinery with Notes Payable-longtem 23.000 Cash payment of dividends 10.000 Cash receit from issuance of 8.000 shares of common stock 80,000 3

Answer 1

3.00 VOD O O S 52 computation of Working capital: 17:38 k ų cetoputation of cutrent ratios Curent ratio current Access ccurrent liatilities Current asico: Particular 2014 cach $1200 OD accounts receivalle 455000 Prepaid Insurance $500D Inventory $25000 Total ourent asseb $2.500D current alii lities: Accounts payaune $12.200 salarice payauce $2.000 sales tax payauce Total cierrent lacilities $16800 Current Ratio $215.000 $ 16,800 2019 $12_5607 195000 $CODO $182200 $16800 $2700 $40DD $2.000 $23.500 12.8 1.75 $.18-2200 323570 Working capital = current nesete current walilitie 2018 = 41822.00 - $23500 - $156700 2014 + $ 215000 - $16800 - $198200 computation of cash ratios cash ratio = 2016 cash and cart equivalents current valinties Hem $125,600 $23500 $120,000 - 1.14 $16800 2019 + 1/1 2 OCR i "I Rotate Mark Recognize Note =

computation of debt ratio: Debt ratio Total Debt Total assets computation of total debte Particulars 2019 2018 current viatilities $16800 $ 23500 Note payabue $ 230DO $1210D Total debt $39.800 $ 35000 computation of total aret: Current Asseto $215000 $182200 office equipment $53000 $47000 Machinery &;tools $ 59600 $ 210DD $327000 $250 200 Debt ratio 0.12 0.14 $39800 $ 35600 $327000 $250 260 completation of Debt-Equity Ratio: Debt-to-equity ratio Debt Clong term debt) Equity $23000 2014 ² $240000 2018 $12100 - 0.08 $160000 Inventory Turnover ratio = cost of goods cold Average inventory 2014 $142600 $35000+ $15600 $142600 $25300 25.64 2/2 =

Income tax expende Groc Profit earnings before interest y tak Dar satus in invertory Inventory 365 tout of 3rodusele 1300D 2014 → 4.365 days = 89.59 Lu 26t Gross profft percentage Sous revenue cost of grocesor Saus Rovers $20 000D - 4142600 $24 ODOD = 40-61 Days saluto Receivable - Accounts receivabile *365 days credit calle $55000 x 365 days $240000 83.65 Rate of return on total ansat - Net Income Total antes computation of Net joemes Sal Revenue o cost of goods cold Gross Income cor Grou profit, o operating expenses: Rent expense $2000D salaries expense $ 44000 Insurance repense $11800 legal fee 49250. Depreciation expense $ 2000 $24 ODO 4142680 $ 97401 C$91070 $400 - Interest Earnings before tax ($140 $30pp ($4.490) Net toes 3/3 C =

Cannot calculat Peturn on total uset athere se rreto Turnover Ratro = salc Revenice Atrage total areto $24000D current stets + DD canent anch $260 UD $215000 + $53600 + $59000 $20 ODIO $327000 0.134. 105 13.4'- Rate in return on stockholderi equily Net Toume Stockholder equita $4400 $240000 + $ 3GOD = 0.016 Garnings pershave - Wet income-prefened Lividends Gutstanding chaues of commin stock $10000+ $400D 24000 $0.5 are total axet - $25020 Dove Shockholders equity - stron Ple ratio Market price per equity share Earnings peshare 30-6 LOO Dindard Yield ratt Dividend porshane Market price pershane χισυ τα 110 4/4 =