Question
Prepare a multi-step income statement and statement of owner's equity for the year ended December 31, 2018. Prepare a classified balance sheet as of December
Prepare a multi-step income statement and statement of owner's equity for the year ended December 31, 2018. Prepare a classified balance sheet as of December 31, 2018. Assume Interest Receivable is a current asset and Interest Payable is a current liability. Then evaluate the company's success for the first year of operations by calculating the following ratios. Round to two decimal places.
a. Liquidity:
i. current ratio
ii. acid-test ratio
iii. cash ratio
b. efficiency:
i. accounts receivable turnover
ii. day's sales in receivable
iii. asset turnover
iv. rate of return on total assets
(adjusted trial balance)
X Reference Enter Net Appliance-Martha's Vineyard Adjusted Trial Balance December 31, 2018 Balance Debit Account Title Credit Cash 196,703 Petty Cash 300 Accounts Receivable 260,000 15,600 Allowance for Bad Debts Merchandise Inventory 423,500 Office Supplies 150 Prepaid Insurance 1,400 Interest Receivable 4,000 Notes Receivable 240,000 90,000 Land Building 840,000 Accumulated Depreciation-Building 26,000 Store Fixtures 82,500 Accumulated Depreciation-Store Fixtures 5,500 70,000 Office Equipment Accumulated Depreciation-Office Equipment 28,000 Franchise 44,100 Accounts Payable 275,000 Interest Payable 18,000 Notes Payable 450,000 Baen, Capital 550,000 3,000 Baen, Withdrawals Sales Revenue 2,015,000 Interest Revenue 10,650 Cost of Goods Sold 671,500 Franchise Fee Expense 141,050 Salaries Expense 210,000 Utilities Expense 13,000 Insurance Expense 1,400 Supplies Expense 606 Bad Debt Expense 15,600 Bank Expense 1,630 Credit Card Expense 900 Depreciation Expense-Building 26,000 Depreciation Expense -Store Fixtures 5,500 Depreciation Expense-Office Equipment 28,000 Amortization Expense-Franchise 4,900 Interest Expense 18,000 11 Cash Short and Over $ 3,393,750 $ 3,393,750 Total Print DoneStep by Step Solution
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