Answered step by step
Verified Expert Solution
Question
1 Approved Answer
D. Canadian Bacon Inc. financial statements are presented in the table below. Based on the information in the table, and using a 365-day year, calculate
D. Canadian Bacon Inc. financial statements are presented in the table below.
Based on the information in the table, and using a 365-day year, calculate operating cycle.
Round the answers to two decimal places
Balance Sheet December 31, 2015
Cash and marketable securities
$187,000
Accounts payable
$217,000
Accounts receivable
$498,000
Notes payable
$51,500
Inventories
$799,000
Accrued expenses
$58,300
Prepaid expenses
$19,300
Total current liabilities
$326,800
Total current assets
$1,503,300
Long-term debt
$215,400
Gross fixed assets
$1,978,000
Par value and paid-in-capital
$128,000
Less: accumulated depreciation
$478,000
Retained Earnings
$2,333,100
Net fixed assets
$1,500,000
Common Equity
2,461,100
Total assets
$3,003,300
Total liabilities and owners equity
$3,003,300
Income Statement, Year of 2015
Net sales (all credit)
$5,386,600.00
Less: Cost of goods sold
$3,716,754.00
Selling and administrative expenses
$329,000.00
Depreciation expense
$138,000.00
EBIT
$1,202,846.00
Interest expense
$39,600.00
Earnings before taxes
$1,163,246.00
Income taxes
$465,298.40
Net income
$697,947.60
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