Homework Answers
| Part-a |
| Gross Profit Percentage=(Gross Profit/Net Sales)×100 |
| Net Sales=528000-2800= $525200 |
| Gross Profit= 525200-350250= $174950 |
| Gross Profit Percentage=($174950/$525200)×100= 33.31% |
| Part-b |
| Working Capital=(Current Assets - Current Liabilities) |
| Working capital= $129630-48000=$81630 |
| Current Assets=(Cash+Accounts Receivable+Notes Receivable, due in 2020+Merchandise Inventory+Prepaid Insurance+Supplies) |
| ( 34220+47330+9100+35300+2310+1370)= $129630 |
| Current Liabilities=(Note Payable, due in 2020+Accounts Payable+Interest Payable) |
| (31000+16690+310)= 48000 |
| Pat-c |
| Current Ratio= Current Asset/ Curent Liability |
| =129630/48000=3:1 |
| Part-d |
| Inventory Turnover Ratio=(Cost of Goods Sold/Average Merchandise Inventory) |
| =($350250/$46700)= 7.5 timees |
| Average Merchandise Inventory=(Opening Merchandise Inventory+Ending Merchandise Inventory)/2 |
| =($58100+$35300)/2= $46700 |
| Part-e |
| Accounts Receivable Turnover=(Net Credit Sales/Average Accounts Receivable) |
| =($525200/$50675)= 10.36 times |
| Average Accounts Receivable=(Opening Accounts Receivable+Ending Accounts Receivable)/2 |
| =($54050+$47,300)/2= $50675 |
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#5 The following selected accounts were taken from the financial records of Los Olivos Distribut...
The following selected accounts were taken from the financial records of Los Olivos Distributors at December...
The following selected accounts were taken from the financial records of Los Olivos Distributors at December 31, 2019. All accounts have normal balances. Cash Accounts receivable Note receivable, due 2020 Merchandise inventory Prepaid insurance Supplies Equipment Accumulated depreciation, equipment Note payable to bank, due 2020 Accounts payable Interest payable Sales Sales discounts Cost of goods sold $ 27,215 47,000 8,800 35,000 2,280 1,340 42,800 22,800 28,000 19,420 280 526,500 2,500 408,320 Accounts Receivable at December 31, 2018, was $53,300. Merchandise...
The following selected accounts were taken from the financial records of Los Olivos Distributors at December 31, 2019....
The following selected accounts were taken from the financial records of Los Olivos Distributors at December 31, 2019. All accounts have normal balances Cash $ 22,599 46,800 8,680 34,800 2,260 1,320 42,600 22,600 26,800 21,248 Accounts receivable Note receivable, due 2020 Merchandise inventory Prepaid insurance Supplies Equipment Accumuleted depreciation, equipment Note payable to bank, due 2820 Accounts payable Interest payable Sales Sales discounts 260 525,500 2,300 397,320 Cost of goods sold Accounts Receivable at December 31, 2018, was $52,800. Merchandise...
The following selected accounts were taken from the financial records of Los Olivos Distributors at December...
The following selected accounts were taken from the financial records of Los Olivos Distributors at December 31, 2019. All accounts have normal balances. Cash Accounts receivable Note receivable, due 2020 Merchandise inventory Prepaid insurance Supplies Equipment Accumulated depreciation, equipment Note payable to bank, due 2020 Accounts payable Interest payable Sales Sales discounts Cost of goods sold $ 19,740 47, 400 9,200 35.400 2.320 1,380 43,200 23, 200 32.000 15,780 320 528,500 2.900 355, 680 Accounts Receivable at December 31, 2018,...
Exercise 13.9 Calculating ratios. LO 13-6 The following selected accounts were taken from the financial records...
Exercise 13.9 Calculating ratios. LO 13-6 The following selected accounts were taken from the financial records of Los Olivos Distributors at December 31, 2019. All accounts have normal balances Cash Accounts receivable Note receivable, due 2020 Merchandise inventory Prepaid insurance Supplies Equipment Accumulated depreciation, equipment Note payable to bank, due 2828 Accounts payable Interest payable Sales Sales discounts Cost of goods sold 5 24,94 46,300 8,109 34,300 2,218 1,270 42,100 22,100 21,880 27,590 210 523,060 1,8e3 384,300 rint Accounts Receivable...
The following selected accounts were taken from the financial records of Los Olivos Distributors at December...
The following selected accounts were taken from the financial records of Los Olivos Distributors at December 31, 2019. All accounts have normal balances. Cash Accounts receivable Note receivable, due 2020 Merchandise inventory Prepaid insurance Supplies Equipment Accumulated depreciation, equipment Note payable to bank, due 2020 Accounts payable Interest payable Sales Sales discounts Cost of goods sold $ 33,985 46,009 7,800 34,000 2,180 1. 240 41.800 21,800 18,000 30,920 180 521,500 1,500 322.695 Accounts Receivable at December 31, 2018, was $56,800....
The following selected accounts were taken from the financial records of Los Olivos Distributors at December...
The following selected accounts were taken from the financial records of Los Olivos Distributors at December 31, 2019. All accounts have normal balances. Cash $ 26,760 Accounts receivable 47,700 Note receivable, due 2020 9,500 Merchandise inventory 35,700 Prepaid insurance 2,350 Supplies 1,410 Equipment 43,500 Accumulated depreciation, equipment 23,500 Note payable to bank, due 2020 35,000 Accounts payable 13,050 Interest payable 350 Sales 530,000 Sales discounts 3,200 Cost of goods sold 348,540 Accounts Receivable at December 31, 2018, was $55,050. Merchandise...
Required information (The following information applies to the questions displayed below.) Summary information from the financial...
Required information (The following information applies to the questions displayed below.) Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 22,000 $ 35,000 Accounts receivable, net 33,400 51,400 Merchandise inventory 84,640 134,500 Prepaid expenses 5,900 7,650 Plant assets, net 360,000 306, 400 Total assets $505,940 $534,950 Barco Kyan Company Company Data from the current year's income statement Sales $770,000 $912,200...
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit, selected balance...
Selected current year-end financial statements of Cabot Corporation
follow. (All sales were on credit, selected balance sheet amounts
at December 31 of the prior year were inventory \$55,900 ; total
assets, \$189.400 common stock, $89,000; and retained earnings
$38,032.)
CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 450,600 Cost of goods sold 297,150 Gross profit 153,450 Operating expenses 99,300 Interest expense 4.300 Income before taxes 49,850 Income tax expense 20,082 Net income 29, 768 Assets Cash...
Solomon Company reports the following in its most recent year of operations • Sales, $1081,600 (all...
Solomon Company reports the following in its most recent year of operations • Sales, $1081,600 (all on account) • Cost of goods sold, $633,600 • Gross profit. $448,000 • Accounts receivable, beginning of year. $94.000 • Accounts receivable, end of year, $114,000 • Merchandise inventory, beginning of year, $59,000 • Merchandise inventory, end of year. $69.000. Based on these balances, compute: a. The accounts receivable turnover. b. The inventory turnover. Complete this question entering your answers in the tabs below....
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance...
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $55,900; total assets, $259,400; common stock, $86,000; and retained earnings, $31,289.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 456,600 Cost of goods sold 297,450 Gross profit 159,150 Operating expenses 98,600 Interest expense 4,600 Income before taxes 55,950 Income tax expense 22,539 Net income $ 33, 411 $ Assets...
The following selected accounts were taken from the financial records of Los Olivos Distributors at December 31, 2019. All accounts have normal balances. Cash Accounts receivable Note receivable, due 2020 Merchandise inventory Prepaid insurance Supplies Equipment Accumulated depreciation, equipment Note payable to bank, due 2020 Accounts payable Interest payable Sales Sales discounts Cost of goods sold $ 27,215 47,000 8,800 35,000 2,280 1,340 42,800 22,800 28,000 19,420 280 526,500 2,500 408,320 Accounts Receivable at December 31, 2018, was $53,300. Merchandise...
The following selected accounts were taken from the financial records of Los Olivos Distributors at December 31, 2019. All accounts have normal balances Cash $ 22,599 46,800 8,680 34,800 2,260 1,320 42,600 22,600 26,800 21,248 Accounts receivable Note receivable, due 2020 Merchandise inventory Prepaid insurance Supplies Equipment Accumuleted depreciation, equipment Note payable to bank, due 2820 Accounts payable Interest payable Sales Sales discounts 260 525,500 2,300 397,320 Cost of goods sold Accounts Receivable at December 31, 2018, was $52,800. Merchandise...
The following selected accounts were taken from the financial records of Los Olivos Distributors at December 31, 2019. All accounts have normal balances. Cash Accounts receivable Note receivable, due 2020 Merchandise inventory Prepaid insurance Supplies Equipment Accumulated depreciation, equipment Note payable to bank, due 2020 Accounts payable Interest payable Sales Sales discounts Cost of goods sold $ 19,740 47, 400 9,200 35.400 2.320 1,380 43,200 23, 200 32.000 15,780 320 528,500 2.900 355, 680 Accounts Receivable at December 31, 2018,...
Exercise 13.9 Calculating ratios. LO 13-6 The following selected accounts were taken from the financial records of Los Olivos Distributors at December 31, 2019. All accounts have normal balances Cash Accounts receivable Note receivable, due 2020 Merchandise inventory Prepaid insurance Supplies Equipment Accumulated depreciation, equipment Note payable to bank, due 2828 Accounts payable Interest payable Sales Sales discounts Cost of goods sold 5 24,94 46,300 8,109 34,300 2,218 1,270 42,100 22,100 21,880 27,590 210 523,060 1,8e3 384,300 rint Accounts Receivable...
The following selected accounts were taken from the financial records of Los Olivos Distributors at December 31, 2019. All accounts have normal balances. Cash Accounts receivable Note receivable, due 2020 Merchandise inventory Prepaid insurance Supplies Equipment Accumulated depreciation, equipment Note payable to bank, due 2020 Accounts payable Interest payable Sales Sales discounts Cost of goods sold $ 33,985 46,009 7,800 34,000 2,180 1. 240 41.800 21,800 18,000 30,920 180 521,500 1,500 322.695 Accounts Receivable at December 31, 2018, was $56,800....
Required information (The following information applies to the questions displayed below.) Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 22,000 $ 35,000 Accounts receivable, net 33,400 51,400 Merchandise inventory 84,640 134,500 Prepaid expenses 5,900 7,650 Plant assets, net 360,000 306, 400 Total assets $505,940 $534,950 Barco Kyan Company Company Data from the current year's income statement Sales $770,000 $912,200...
Selected current year-end financial statements of Cabot Corporation
follow. (All sales were on credit, selected balance sheet amounts
at December 31 of the prior year were inventory \$55,900 ; total
assets, \$189.400 common stock, $89,000; and retained earnings
$38,032.)
CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 450,600 Cost of goods sold 297,150 Gross profit 153,450 Operating expenses 99,300 Interest expense 4.300 Income before taxes 49,850 Income tax expense 20,082 Net income 29, 768 Assets Cash...
Solomon Company reports the following in its most recent year of operations • Sales, $1081,600 (all on account) • Cost of goods sold, $633,600 • Gross profit. $448,000 • Accounts receivable, beginning of year. $94.000 • Accounts receivable, end of year, $114,000 • Merchandise inventory, beginning of year, $59,000 • Merchandise inventory, end of year. $69.000. Based on these balances, compute: a. The accounts receivable turnover. b. The inventory turnover. Complete this question entering your answers in the tabs below....
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $55,900; total assets, $259,400; common stock, $86,000; and retained earnings, $31,289.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 456,600 Cost of goods sold 297,450 Gross profit 159,150 Operating expenses 98,600 Interest expense 4,600 Income before taxes 55,950 Income tax expense 22,539 Net income $ 33, 411 $ Assets...
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