Module 4 Textbook Problem 6 Learning Objectives: . 4-2 Calculate ratios for assessing a company's liquidity . 4-3 Calculate ratios for assessing a company's solvency The December 31, Year 4, balance sheet for Thornton Corporation is presented here. These are the only accounts on Thornton's balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information: Assets Cash THORNTON CORPORATION Balance Sheet As of December 31, Year 4 Accounts receivable (net) $ 32,000 ? 320,000 Inventory Property, plant, and equipment (net) $442,000 Liabilities and Stockholders' Equity Accounts payable (trade) Income taxes payable (current) Long-term debt Common stock Retained earnings $ 32,000 326,000 $ Additional Information Current ratio (at year end) Gross margin percentage Total liabilities + Total stockholders' equity Inventory turnover (Cost of goods sold Ending inventory)) Gross margin for Year 4 1.6 to 1.0 70% 30x 11.5 times $345,000 Required a. Compute the balance in trade accounts payable as of December 31, Year 4. b. Compute the balance in retained earnings as of December 31, Year 4 c. Compute the balance in the inventory account as of December 31, Year 4. (Assume that the level of inventory did not change from last year) 4 (For all requirements, negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Answer is complete but not entirely correct. Accounts payable 44,250 b. Retained eamings S 66,000 C Inventory 70.000