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Green Earth Homes Inc., builds environmentally sensitive structures. The company's 2021 revenues totaled $2,820 million. At December 31, 2021, and 2020, the company had, respectively,
Green Earth Homes Inc., builds environmentally sensitive structures. The company's 2021 revenues totaled $2,820 million. At December 31, 2021, and 2020, the company had, respectively, $654 million and $584 million in current assets. The December 31, 2021, and 2020, balance sheets and income statements reported the following amounts:
December 31, 2021, and 2020, balance sheets and income statements reported the following amounts: 1 (Click the icon to view the amounts.) Read the requirements 2. Requirement 1. Describe each of Green Earth Homes, Inc.'s liabilities and state how the liability arose. Choose the correct liability from the list that best fits the description provided. (1) (2) (3) (4) (5) (6) The amount of long-term notes and bonds payable that the company expects to pay after the coming year. A catch-all group of liabilities that do not fit one or more specific categories. This is usually listed among the long-term liabilities. Amounts owed to suppliers for products or services that have been purchased on account. Amounts owed to employees for salaries and other payroll-related expenses. Amounts owed for providing benefits to retirees such as health care costs. The next year's payments on the company's long-term debt. Expenses that the company has incurred but not yet paid; these are liabilities for expenses such as interest and income taxes. Requirement 2. What were the company's total assets at December 31, 2021? The total assets at December 31, 2021 were million. Determine the formula for the accounts payable turnover. Then complete the formula and calculate the accounts payable turnover ratios at the end of 2020 and 2021 . (Enter amounts in millions.) 2021 answers to the nearest whole day.) Now, determine the formula for the current ratio. Then complete the formula and calculate the current ratios at the end of 2020 and 2021 . (Enter amounts in millions. Round your answer to two decimal places.) 2021 2020 =Currentratio Evaluate whether the company improved or deteriorated from the standpoint of ability to cover accounts payable and current liabilities over the year. The company's ability to cover accounts payable and current liabilities over the year (14) 1. Describe each of Green Earth Homes, Inc.'s liabilities and state how the liability arose. 2. What were the company's total assets at December 31, 2021? (1) Accounts payable Accrued employee compensation and benefits Accrued expenses Current portion of long-term debt (3) Accounts payable Accrued employee compensation and benefits Accrued expenses Current portion of long-term debt (5) Accounts payable Accrued employee compensation and benefits Accrued expenses Current portion of long-term debt (7) Accounts payable Accrued employee compensation and benefits Accrued expenses Current portion of long-term debt Long-term debt Other liabilities Post-retirement benefits Long-term debt Other liabilities Post-retirement benefits Long-term debt Other liabilities Post-retirement benefits Long-term debt Other liabilities Post-retirement benefits (2) Accounts payable Accrued employee compensation and benefits Accrued expenses Current portion of long-term debt (4) Accounts payable Accrued employee compensation and benefits Accrued expenses Current portion of long-term debt (6) Accounts payable Accrued employee compensation and benefits Accrued expenses Current portion of long-term debt (8) 365 Average accounts payable Current liabilities Long-term debt Other liabilities Post-retirement benefits Long-term debt Other liabilities Post-retirement benefits Long-term debt Other liabilities Post-retirement benefits Days payable outstanding Long-term liabilities Purchases from suppliers (or COGS) Stockholders' equity (9) 365 Average accounts payable Current liabilities (11) 365 Average accounts payable Accounts payable turnover Days payable outstanding Long-term liabilities Purchases from suppliers (or COGS) Stockholders' equity Cost of goods sold Current liabilities Long-term liabilities Stockholders' equity Current liabilities Days payable outstanding Long-term liabilities Stockholders' equity Total assets (10) 365 Average accounts payable Accounts payable turnover Cost of goods sold Current liabilities Long-term liabilities Stockholders' equity Total assets Current liabilities Days payable outstanding Long-term liabilities Stockholders' equity Total assets Total current assets Average accounts payable Cost of goods sold Total current liabilities (14) deteriorated. Total assets deteriorated. improved. Total current liabilities Cost of goods sold Total current liabilities improved. Total assets 365 Total current assetsStep by Step Solution
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