Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Information for Swifty Corporation is given below: Swifty Corporation Balance Sheet December 31, 2021 Assets Equities Cash $ 307000 Accounts payable $ 640000 1959000 Income
Information for Swifty Corporation is given below: Swifty Corporation Balance Sheet December 31, 2021 Assets Equities Cash $ 307000 Accounts payable $ 640000 1959000 Income taxes payable 191000 Accounts receivable (net) Inventories 2443000 224000 Miscellaneous accrued payables Plant and equipment, 1900000 Bonds payable (8%, due 2023) net of depreciation 1983000 Preferred stock ($100 par, 6% Patents 260000 740000 cumulative nonparticipating) Other intangible assets 75900 Common stock (no par, 60,000 Total Assets $7027900 shares authorized, issued and outstanding) 1124000 Retained earnings 2438900 Treasury stock-1500 shares of preferred (230000) Total Equities $7027900 Swifty Corporation Income Statement Year Ended December 31, 2021 Net sales $9500000 Cost of goods sold 6300000 Gross profit 3200000 Operating expenses (including bond interest expense) 1500000 Income before income taxes 1700000 Income tax 510000 Net income 1190000 Additional information: There are no preferred dividends in arrears, the balances in the Accounts Receivable and Inventory accounts are unchanged from January 1, 2021, and there were no changes in the Bonds Payable, Preferred Stock, or Common Stock accounts during 2021. Assume that preferred dividends for the current year have not been declared. The number of times interest was earned during 2021 was O 1852 = 152. O 1354 = 152. O 1700 = 152. O 1190 = 152
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started