Given the following data: 2001 2000 Cash $300,000 $340,000 Retained earnings ? ? Accounts payable 20,000 11,000
Question:
Given the following data:
2001 2000 Cash $300,000 $340,000 Retained earnings ? ?
Accounts payable 20,000 11,000 Wages payable 7,000 5,000 Interest payable 10,000 30,000 Bonds payable 40,000 100,000 Mortgage payable 60,000 300,000 Invested capital 500,000 600,000 Accounts receivable 37,500 118,000 Inventories 55,000 87,000 Fixed assets, net 165,000 320,000 Required
a. Rearrange these data into classified balance sheets.
b. Find the missing Retained Earnings amounts necessary to balance each balance sheet.
c. Evaluate the firm’s liquidity, using the ratios described in this chapter.
d. Calculate the firm’s asset management and debt management ratios. Evaluate the results.
Step by Step Answer:
Financial Accounting Reporting And Analysis
ISBN: 9780324149999
6th Edition
Authors: Earl K. Stice, James Stice, Michael Diamond, James D. Stice