Exercise 14-10

Lingenfelter Corporation experienced a fire on December 31, 2017, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following balances.

		December 31, 2017			December 31, 2016
Cash		$ 25,000			$ 11,000
Accounts receivable (net)		79,500			127,500
Inventory		194,000			171,000
Accounts payable		53,500			88,000
Notes payable		30,000			61,000
Common stock, $100 par		392,000			392,000
Retained earnings		120,000			109,000

Additional information:

1.		The inventory turnover is 2.7 times.
2.		The return on common stockholders equity is 20%. The company had no additional paid-in capital.
3.		The accounts receivable turnover is 8.4 times.
4.		The return on assets is 12.5%.
5.		Total assets at December 31, 2016, were $605,000.

Compute the following for Lingenfelter Corporation.

1. Cost of goods sold for 2017

2. Net sales (credit) for 2017

3. Net income for 2017

4. Total assets at December 31, 2017

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