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Given the data below, reconstruct the balance sheet and the income statement of Regodos Pearls for the year 2017: Regodos Pearls Balance Sheet December 31,
- Given the data below, reconstruct the balance sheet and the income statement of Regodos Pearls for the year 2017:
Regodos Pearls
Balance Sheet
December 31, 2017
ASSETS
Current Assets: | |||
Cash | ? | ||
Marketable Securities | 50,000 | ||
Accounts Receivable, net | ? | ||
Inventories | ? | ? | |
Property & Equipment: | |||
Plant & Equipment, net | ? | ||
TOTAL ASSETS | ? |
LIABILITIES & STOCKHOLDERS EQUITY
Current Liabilities | ? | ||
Long Term Liabilities: | |||
Bonds Payable, 12.5% | ? | ||
TOTAL LIABILITIES | ? | ||
Stockholders' Equity: | |||
Ordinary Share | 500,000 | ||
Retained Earnings | 300,000 | 800,000 | |
TOTAL LIABILITIES & STOCKHOLDERS EQUITY | ? |
Regodos Pearls
Income Statement
For the year ended December 31, 2017
Net Sales | ? | |
Cost of Goods Sold | ? | |
Gross Margin on Sales | 525,000 | |
Operating Expenses | ? | |
Operating Income | ? | |
Other Expense: Interest Expense | ? | |
Net Income before Taxes | ? | |
Income Tax (35% Tax Rate) | ? | |
NET INCOME | ? |
Additional Data:
- Operating expenses were 15% of net sales.
- Acid test ratio was 1.3:1.
- Times interest earned was 6 times.
- Gross margin was 35% of net sales.
- The age of receivables was 36 days.
- The beginning accounts receivable was Php 160,000. Use 360 day year.
- Inventory turnover was 4 times. The beginning inventory amounted to Php 250,000.
- Total debt to stockholders' equity was 0.08:1.
Compute the following requirements using the given formula:
- Net Sales =(Gross margin/gross margin ratio)
- Cost of sales= (Net Sales x Cost of Sales ratio)
- Operating Expenses= (Net Sales x % to Net Sales)
- Operating Income = (Net Sales - Cost of Sales - Operating Expenses)
- Interest Expense = (Operating Income/Times Interest Earned
- Bond Payable = (Interest Expense/Interest Rate)
- Receivable Turnover =(360 days/Age in Receivables)
- Average Receivables = (Net Credit Sales/Receivable Turnover)
- Ending Accounts Receivable = (Average Receivables x 2)
- Average Inventory = (Cost of Goods Sold / Inventory Turnover)
- Ending Inventory = (Average Inventory x 2)
- Total Debt = (Ratio of Total Debt & Stockholders' Equity)
- Current Liabilities = (Total Debt - Bonds Payable)
- Quick Assets = (Acid Test ratio x Current Liabilities)
- Cash = (Quick Assets - Marketable Securities - Accounts Receivable)
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