Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Condensed financial data for ABC Inc are given below. ABC Inc Comparative Balance Sheet December 31 Assets Cash Accounts receivable Inventory Land Equipment Accumulated depreciation

image text in transcribed

Condensed financial data for ABC Inc are given below. ABC Inc Comparative Balance Sheet December 31 Assets Cash Accounts receivable Inventory Land Equipment Accumulated depreciation - equipment Total assets 2021 $ 120,000 68,000 200,000 1,430,000 1,006,000 (85,000) $2.739,000 2020 $ 40,000 54,000 230,000 1,300,000 916,000 (40.000) $2.500.000 Liabilities and Stockholders' Equity Accounts payable $ 104,000 Salaries and wages payable 42,000 Bonds payable 1,150,000 Common stock 1,338,000 I Retained earnings 105 000 Total liabilities and stockholders' equity $2.739.000 $ 24,000 48,000 1,150,000 1,208,000 70,000 $2.500.000 Additional information for 2021: 1. A cash dividend of $40,000 was declared and paid during the year. 2. Additional equipment was purchased for cash. 3. Land was acquired by issuing common stock. Instructions: Prepare a statement of cash flows for the year ended December 31, 2021, using the indirect method 1 Add File 4 points Using the Balance Sheet of ABC Inc. given above calculate the following ratios for 2021 (1) LIQUIDITY POSITION-CURRENT RATIO (2) PROFITABILTY POSITION-PROFIT MARGIN (NET SALES=$5000,000 (3) SOLVENCY POSITION- DEBT TO ASSET RATIO (4) ROE (Return on Equity) Your

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: C. William Thomas, Wendy M Tietz

13th Edition

013689903X, 9780136899037

More Books

Students also viewed these Accounting questions

Question

What factors infl uence our perceptions?

Answered: 1 week ago