Question
Great Lakes Manufacturing Inc. comparative Statement of Financial Position at December 31 in (000)'s 20X4 20X3 Cash $ 5,100 $ 4,800 Accounts Receivable $ 9,010
Great Lakes Manufacturing Inc. comparative Statement of Financial Position at December 31 in (000)'s | ||||||
20X4 | 20X3 | |||||
Cash | $ | 5,100 | $ | 4,800 | ||
Accounts Receivable | $ | 9,010 | $ | 6,100 | ||
Inventory | $ | 10,400 | $ | 14,000 | ||
Prepaid Expenses | $ | 1,950 | $ | 1,020 | ||
Equipment | $ | 58,500 | $ | 59,900 | ||
Accumulated Depreciation - equipment | $ | (33,100 | ) | $ | (32,000 | ) |
Total Assets | $ | 51,860 | $ | 53,820 | ||
Account Payable | $ | 7,000 | $ | 11,400 | ||
Interest Payable | $ | 350 | $ | 110 | ||
Income taxes payable | $ | 650 | $ | 500 | ||
Dividends Payable | $ | 2,400 | $ | 3,200 | ||
Long-term Notes Payable | $ | 17,500 | $ | 17,000 | ||
Common shares | $ | 22,000 | $ | 20,000 | ||
Retained Earnings | $ | 1,960 | $ | 1,610 | ||
Total Liabilities & Shareholders' Equity | $ | 51,860 | $ | 53,820 | ||
Great Lakes Manufacturing Inc. | |||||
Income Statement | |||||
Year Ended December 31, 20X4 in (000)'s | |||||
Sale | $ | 130,000 | |||
Cost of goods sold | $ | 97,000 | |||
Gross Profit | $ | 33,000 | |||
Operating Expenses | $ | 30,000 | |||
Gain on Sale of equipment | $ | (1,000 | ) | $ | 29,000 |
Profit from Operations | $ | 4,000 | |||
Other expenses | |||||
Interest Expense | $ | 200 | |||
Profit before Income Tax | $ | 3,800 | |||
Income Tax Expense | $ | 1,550 | |||
Profit | $ | 2,250 | |||
Additional Information:
Operating expenses include depreciation expense of $3,500,000
Accounts Payable related to the purchase of inventory
Equipment that cost $3,900,000 was sold at a gain of $1,000,000
New equipment was purchased during the year for $2,500,000
Dividends declared and paid in 20X4 totaled $1,900,000
Common shares were sold for $2,000,000 cash
Interest payable in 20X4 was $240,000 greater than interest payable in 20X3
The working capital turnover at December 20X3 was:
Multiple Choice
Equal or below 3.08
Between 6.18 and 12.35
Equal or above 12.36
Between 3.09 and 6.17
Not enough data provided to calculate it
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