Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $650 were declared at the end
Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $650 were declared at the end of the year, and 540 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2,160 in cash (for a total at the end of the year of 800 shares). These effects are included below: Debit Catena's Marketing Company Adjusted Trial Balance End of the Current Year Credit Cash $ 1,580 Accounts receivable 2,300 Interest receivable 250 Prepaid insurance 1,630 Long-term notes receivable 2,820 Equipment 15,100 Accumulated depreciation $ 2,900 Accounts payable 2,390 Dividends payable 650 Accrued expenses payable 3,730 Income taxes payable 2,670 Unearned rent revenue 350 Common Stock (800 shares) 80 Additional paid-in capital 3,470 Retained earnings 3,110 Sales revenue 37,552 Interest revenue 110 Rent revenue 700 Wages expense 18,500 Depreciation expense 1,750 Utilities expense 330 Insurance expense 730 Rent expense 10,000 Income tax expense 2,720 Total $ 57,710 $ 57,710 a. Compute total assets for Catena's Marketing Company based on the adjusted trial balance. Total assets b. Compute the company's total asset turnover for the current year, assuming total assets at the end of the prior year were $16,900. Total Asset Turnover Choose Denominator: Choose Numerator: 1 Total Asset Turnover Total asset turnover 1
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started