Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 13-9A (Algo) Comprehensive analysis LO 13-2, 13-3 The December 31, Year 4, balance sheet for Finch Corporation is presented here. These are the

image text in transcribed

Exercise 13-9A (Algo) Comprehensive analysis LO 13-2, 13-3 The December 31, Year 4, balance sheet for Finch Corporation is presented here. These are the only accounts on Finch's balance sheet. Amounts Indicated by question marks (?) can be calculated using the following additional Information: FINCH CORPORATION Balance Sheet As of December 31, Year 4 Assets Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) $ 35,000 ? ? 292,000 $442,000 Liabilities and Stockholders' Equity Accounts payable (trade) $ ? Income taxes payable (current) Long-term debt 35,000 ? Common stock Retained earnings 298,000 ? $ ? Additional Information Current ratio (at year end) Total liabilities Total stockholders' equity Gross margin percentage Inventory turnover (Cost of goods sold Ending inventory) Gross margin for Year 4 1.6 to 1.0 70% 40% 9.6 times $340,000 Required a. Compute the balance in trade accounts payable as of December 31, Year 4. b. Compute the balance in retained earnings as of December 31, Year 4. c. Compute the balance in the Inventory account as of December 31, Year 4. (Assume that the level of Inventory did not change from last year.) (For all requirements, negative amounts should be Indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) a. Accounts payable b. Retained earnings c. Inventory

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

Modern Advanced Accounting In Canada

Authors: Hilton Murray, Herauf Darrell

7th Edition

1259066487, 978-1259066481

More Books

Students also viewed these Accounting questions

Question

Define Management by exception

Answered: 1 week ago

Question

Explain the importance of staffing in business organisations

Answered: 1 week ago

Question

What are the types of forms of communication ?

Answered: 1 week ago

Question

Use translations to graph f. f(x) = x-/2 +1

Answered: 1 week ago