Question
Classified Balance Sheet Following is a list of account titles and balances for Pennington Investment Corporation as of January 31, 2013. Hide Prepare a properly
Classified Balance Sheet Following is a list of account titles and balances for Pennington Investment Corporation as of January 31, 2013. Hide Prepare a properly classified balance sheet. Pennington Investment Corporation Balance Sheet January 31, 2013 Assets Current assets: Cash on hand $ 96,250 Cash in banks 8,320 Investment securities (trading) 83,750 Notes receivable $ 32,960 Accounts receivable 158,200 Total $ 191,160 Less allowance for doubtful notes and accounts receivable 24,700 166,460 Interest receivable 2,700 Claim for income tax refund 4,000 Inventory 201,500 Prepaid expenses: Prepaid insurance $ 3,900 Miscellaneous supplies inventory 4,200 8,100 $ 571,080 Long-term investments: Cash fund for stock redemption $ 17,500 Investments in undeveloped properties 193,500 211,000 Property, plant, and equipment: Land $ 213,000 Buildings $ 320,000 Less: Accumulated depreciation - buildings 139,500 180,500 Machinery and equipment $ 165,500 Less: Accumulated depreciation - machinery and equipment 116,300 49,200 442,700 Total assets $ 1,224,780 Liabilities Current liabilities: Notes payable $ 68,320 Accounts payable 92,400 Salaries and wages payable 15,700 Income taxes payable 18,000 Interest payable 5,790 Employees' income taxes payable 4,360 $ 204,570 Noncurrent liabilities: Notes payable (due 2016) 63,800 Total liabilities $ 268,370 Stockholders' Equity Contributed capital: Preferred stock $ 285,000 Common stock 55,000 Additional paid-in capital - common stock 605,000 $ 945,000 Retained earnings 11,410 Total stockholders' equity 956,410 Total liabilities and stockholders' equity $ 1,220,280
Assume net income of $300,000 and sales of $7,000,000. Compute the current ratio, debt ratio, and asset turnover. Round current ratio and asset turnover to two decimal places. Round debt ratio to three decimal places. Current ratio: Debt ratio: Asset turnover:
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