Question
13) Carver Company's balance sheet and income statement are provided below: Carver Company Balance Sheet December 31 Assets Cash $ 40,000 Accounts receivable 52,000 Inventory
13) Carver Company's balance sheet and income statement are provided below:
Carver Company |
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Balance Sheet |
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December 31 |
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Assets |
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Cash | $ | 40,000 |
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Accounts receivable |
| 52,000 |
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Inventory |
| 80,000 |
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Plant and equipment, net of depreciation |
| 280,000 |
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Land held for future plant expansion |
| 76,000 |
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Total assets | $ | 528,000 |
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Liabilities and Stockholders' Equity |
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Accounts payable | $ | 45,000 |
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Notes payable |
| 58,000 |
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Capital stock, no par |
| 240,000 |
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Retained earnings |
| 185,000 |
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Total liabilities and stockholders' equity | $ | 528,000 |
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Carver Company |
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Income Statement |
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For the Year Ended December 31 |
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Sales | $ | 330,000 |
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Less variable costs: |
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Manufacturing |
| 68,000 |
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Selling and administrative |
| 48,000 |
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Contribution margin | $ | 214,000 |
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Less fixed costs: |
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Manufacturing |
| 68,000 |
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Selling and administrative |
| 56,000 |
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Net income | $ | 90,000 |
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Required:
1) Compute the margin, turnover, and return on investment for Carver Company.
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