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Practice Exercise 02 Wiemers Corporation's comparative balance sheets are presented below. 2016 WIEMERS CORPORATION Balance Sheets December 31 2017 Cash $ 4,600 Accounts receivable (net)
Practice Exercise 02 Wiemers Corporation's comparative balance sheets are presented below. 2016 WIEMERS CORPORATION Balance Sheets December 31 2017 Cash $ 4,600 Accounts receivable (net) 21,000 Inventory 10,000 Land 20,000 Buildings 69,800 Accumulated depreciation-buildings (15,400) Total $110,000 Accounts payable $ 12,300 Common stock 74,900 Retained earnings 22,800 Total $110,000 $ 3,700 23,700 6,800 26,300 69,800 (10,900) $119,400 $ 31,200 70,500 17,700 $119,400 Wiemers's 2017 income statement included net sales of $118,000, cost of goods sold of $60,600, and net income of $15,800. Compute the following ratios for 2017. (Round Debt to assets ratio to 1 decimal place, e.g. 1.6, or 1.6% and all other answers to 2 decimal places, e.g. 1.64, or 1.64%.) (a) Current ratio :1 (b) Acid-test ratio :1 (c) Accounts receivable turnover times (d) Inventory turnover times (e) Profit margin % (f) Asset turnover times (g) Return on assets % (h) Return on common stockholders' equity % () Debt to assets ratio % Do It! Review 17-02 b Alex Company reported the following information for 2020. Alex Company Comparative Balance Sheets December 31 Assets 2020 2019 $33,000 23,000 -0- Cash Accounts receivable Inventory Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment $61,000 65,000 47,000 6,000 55,000 210,000 (24,000) 188,000 (29,000) $579,000 4,000 75,000 210,000 (16,000) 65,000 (10,180) $383,820 Change Increase/Decrease $28,000 Increase 42,000 Increase 47,000 Increase 2,000 Increase 20,000 Decrease -0- 8,000 Increase 123,000 Increase 18,820 Increase Totals Increase Decrease Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock ($1 par) Retained earnings $44,000 -0- 99,000 237,000 199,000 $579,000 Decrease $39,000 10,000 145,000 64,000 125,820 $383,820 $5,000 10,000 46,000 173,000 73,180 Increase Increase Totals Alex Company Income Statement For the Year Ended December 31, 2020 Sales revenue $908,000 Cost of goods sold $439,000 Operating expenses 212,000 Interest expense 11,000 Loss on disposal of plant assets 2,000 664,000 Income before income taxes 244,000 Income tax expense 61,000 Net income $183,000 Additional information: 1. 2. 3. 4. Operating expenses include depreciation expense of $40,820. Land was sold at its book value for cash. Cash dividends of $109,820 were declared and paid in 2020. Equipment with a cost of $178,000 was purchased for cash. Equipment with a cost of $55,000 and a book value of $41,000 was sold for $39,000 cash. Bonds of $46,000 were redeemed at their face value for cash. Common stock ($1 par) of $173,000 was issued for cash. 5. 6. Use this information to Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) ALEX COMPANY Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to
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