Question
A recent balance sheet of Save-A-Lot Supplies is provided below SAVE-A-LOT SUPPLIES BALANCE SHEET DECEMBER 31, 2015 Assets Cash $13,600 Accounts receivable 14,400 Office supplies
A recent balance sheet of Save-A-Lot Supplies is provided below
SAVE-A-LOT SUPPLIES
BALANCE SHEET
DECEMBER 31, 2015
Assets
Cash $13,600
Accounts receivable 14,400
Office supplies 600
Prepaid rent 3,400
Equipment $24,000
Accumulated depreciation equipment(9,600) $14,400
Total assets $46,400
Liabilities
Accounts payable $4,400
Income taxes payable 3,600
total liabilities $8,000
Stockholders' Equity
Capital stock $20,000
Retained earnings 18,400
Total stockholders' equity $38,400
Total liabilities and stockholders' equity $46,400
other information provided by the company is as follows:
total revenue for the year ended december 31,2015 $51,000
total expenses for the year ended december 31, 2015 38,250
total stockholders' equity, January 1, 2015 29,600
Compute and discuss briefly the significance of the following measures as they relate to save-a-lot supplies
a. net income percentage in 2015
b.return on equity in 2015
c.working capital on december 31, 2015
d. current ratio on december 31, 2015
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Advanced Financial Accounting
Authors: Richard Baker, Valdean Lembke, Thomas King, Cynthia Jeffrey
8th Edition
73526916, 978-0073526911
