Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fill in the blanks- The other calculations are correct- Need help with the blanks The following information is available about the company: a.All sales during

Fill in the blanks- The other calculations are correct- Need help with the blanks

The following information is available about the company:

a.All sales during the year were on account.

b.There was no change in the number of shares of common stock outstanding during the year.

c.The interest expense on the income statement relates to the bonds payable; the amount of

bonds outstanding did not change during the year.

d.Selected balances at thebeginningof the current year were:

Accounts receivable$100,000

Inventory$220,000

Total assets$1,050,000

e.Selected financial ratios computed from the statements below for the current year are:

Earnings per share$1.92Debt-to-equity ratio0.800Accounts receivable turnover16.0Current ratio2.00Return on total assets10%Times interest earned ratio5.0Acid-test ratio1.13Inventory turnover9.0

Required:Compute the missing amounts on the company's financial statements. (Hint: What's the difference between the acid-test ratio and the current ratio?)(Do not round intermediate calculations.)

image text in transcribed
Accounts receivable 100,000 Inventory $ 220,000 Total assets $1,050,000 e. Selected financial ratios computed from the statements below for the current Earnings per share $ 1.92 Debt-to-equity ratio 0.800 Accounts receivable turnover 16.0 Current ratio 2.00 Return on total assets 10% Times interest earned ratio 5.0 Acid-test ratio 1.13 Inventory turnover 9.0

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

Payroll Accounting 2020

Authors: Bernard J. Bieg, Judith A. Toland

30th edition

357117174, 978-0357117170

More Books

Students also viewed these Accounting questions

Question

What Is a Strategy?

Answered: 1 week ago

Question

1. Build trust and share information with others.

Answered: 1 week ago