Question
11) The following information is available on the Vanier Corporation: BALANCE SHEET AS OF DECEMBER 31 , 20X6 (in thousands) Cash and marketable securities $500
11) The following information is available on the Vanier Corporation:
BALANCE SHEET AS OF DECEMBER 31, 20X6 (in thousands)
Cash and marketable securities $500 Accounts payable $ 400
Accounts receivable ? Bank loan ?
Inventories ? Accruals 200
Current assets ? Current liabilities ?
Long-term debt 2,650
Net fixed assets ? Common stock and retained earnings 3,750
Total assets ? Total liabilities and equity ?
INCOME STATEMENT FOR 20X6 (in thousands)
Credit sales $8,000
Cost of goods sold ?
Gross profit ?
Selling and administrative expenses ?
Interest expense 400
Profit before taxes ?
Taxes (44% rate) ?
Profit after taxes ?
OTHER INFORMATION
Current ratio 3 to 1
Depreciation $500
Net profit margin 7%
Total liabilities/shareholders equity 1 to 1
Average collection period 45 days
Inventory turnover ratio 3 to 1
Assuming that sales and production are steady throughout a 360-day year, complete the
balance sheet and income statement for Vanier Corporation.
11) The following information is available on the Vanier Corporation:
BALANCE SHEET AS OF DECEMBER 31, 20X6 (in thousands)
Cash and marketable securities $500 Accounts payable $ 400
Accounts receivable ? Bank loan ?
Inventories ? Accruals 200
Current assets ? Current liabilities ?
Long-term debt 2,650
Net fixed assets ? Common stock and retained earnings 3,750
Total assets ? Total liabilities and equity ?
INCOME STATEMENT FOR 20X6 (in thousands)
Credit sales $8,000
Cost of goods sold ?
Gross profit ?
Selling and administrative expenses ?
Interest expense 400
Profit before taxes ?
Taxes (44% rate) ?
Profit after taxes ?
OTHER INFORMATION
Current ratio 3 to 1
Depreciation $500
Net profit margin 7%
Total liabilities/shareholders equity 1 to 1
Average collection period 45 days
Inventory turnover ratio 3 to 1
Assuming that sales and production are steady throughout a 360-day year, complete the
balance sheet and income statement for Vanier Corporation.
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
