Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Given below are selected balance sheet items and ratios as of June 30, 2019 for the More Debits than Credits School of Accounting which issues

Given below are selected balance sheet items and ratios as of June 30, 2019 for the More Debits than Credits School of Accounting which issues erasers instead of diplomas to its graduates.

total stockholders equity (includes 100,00 shares of no par common stock issued at $6 per share) $1,000,000

plant and equipment (net) 470,000

asset turnover rate per year (sales/total assets) 3 times

Inventory turnover rate per year 6 times

gross profit percentage 30%

Ratio of current liabilities to stockholders equity (there is no long term debt) 1.2 to 1

acid- test ratio (quick ratio) 0.8 to 1

Assume that balance sheet figures represent average amounts and that all sales are made on account.

Instructions: From the foregoing information, construct a balance sheet for the corporation as of June 30, 2019 in as much detail as the data permits.

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

Management And Cost Accounting

Authors: Charles T. Horngren (Author), Alnoor Bhimani (Author), Srikant M. Datar (Author), George Foster

2nd Edition

0273651838, 978-0273651833

More Books

Students also viewed these Accounting questions