Lingenfelter 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. December 31, 2017 December 31, 2016 Cash $ 27,000 $ 14,500 Accounts receivable (net) 74,500 125,000 Inventory 199,000 185,000 Accounts payable 47,000 91,000 Notes payable 27,500 57,000 Common stock, $100 par 399,000 399,000 Retained earnings 118,000 107,000
Additional information: 1. The inventory turnover is 3.8 times.
2. The return on common stockholders’ equity is 26%. The company had no additional paid-in capital.
3. The accounts receivable turnover is 8.7 times.
4. The return on assets is 12.5%.
5. Total assets at December 31, 2016, were $593,000.
Compute the following for Lingenfelter Corporation. (Round answers to 0 decimal places, e.g. 5,275.)
(a) Cost of goods sold for 2017
(b) Net sales (credit) for 2017
(c) Net income for 2017 (
d) Total assets at December 31, 2017
a) Average inventory= ($199000+185000)/2= $192000
Inventory turnover ratio= Cost of goods sold/Average inventory
3.8= Cost of goods sold/192000
Cost of goods sold= 192000*3.8
Cost of goods sold= $729600
b) Average accounts receivable= ($74500+125000)/2= $99750
Accounts receivable turnover= Net sales/Average accounts receivable
8.7= Net sales/99750
Net sales= $99750*8.7
Net sales= $867825
c) Average common stockholders' equity= ($399000+399000+118000+107000)/2= $511500
Return on common stockholders' equity= Net income/Average common stockholders' equity
26%= Net income/511500
Net income= $511500*26%
Net income= $132990
d) Return on assets= Net income/Average total assets
12.5%= $132990/Average total assets
Average total assets= $132990/12.5%
Average total assets= $1063920
Average total assets= (Beginning assets+Ending assets)/2
$1063920= ($593000+Ending assets)/2
$2127840= $593000+Ending assets
Ending assets= 2127840-593000= $1534840
Total assets at December 31, 2017= $1534840
NOTE:- For any problem regarding the answer please ask in the comment section.
Lingenfelter Corporation experienced a fire on December 31, 2017, in which its financial records were partially...
Lingenfelter 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.
December 31, 2017
December 31, 2016
Cash
$ 30,000
$ 16,000
Accounts receivable (net)
74,500
130,000
Inventory
195,000
176,000
Accounts payable
45,000
91,000
Notes payable
28,000
61,000
Common stock, $100 par
401,000
401,000
Retained earnings
120,000
106,500
Additional information:
1.
The inventory turnover is 3.0 times.
2....
Lingenfelter 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. December December 31, 2017 31, 2016 $ 26,500 $ 11,000 Cash Accounts receivable (net) 77,500 123,500 199,000 Inventory 186,000 Accounts payable 93,000 52,000 Notes payable 64,000 28,500 Common stock, $100 par 388,000 388,000 Retained earnings 111,000 108,500 Additional information: 1. The inventory turnover is 3.7 times. 2....
Exercise 14-10 Lingenfelter 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. December 31, 2017 December 31, 2016 Cash $ 25,000 $ 11,000 Accounts receivable (net) 79,500 127,500 Inventory 194,000 171,000 Accounts payable 53,500 88,000 Notes payable 30,000 61,000 Common stock, $100 par 392,000 392,000 Retained earnings 120,000 109,000 Additional information: 1. The inventory turnover is 2.7...
Belcanto 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. Cash Accounts receivable (net) Inventory Accounts payable Notes payable Common stock, $100 par Retained earnings December 31, 2017 40,000 84,000 200,000 50,000 30,000 400,000 170,000 December 31, 2016 15,000 126,000 180,000 10,000 20,000 400,000 101,000 Additional information 1. The inventory turnover is 4.2 times. 2. The return...
Concord 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.
December 31, 2017
December 31, 2016
Cash
$ 36,300
$ 19,700
Accounts receivable
(net)
80,900
128,900
Inventory
209,700
183,700
Accounts payable
53,700
89,800
Notes payable
33,600
68,000
Common stock, $100 par
407,000
407,000
Retained earnings
119,600
105,100
Additional information:
1.
The inventory turnover is 3.7
times.
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