Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Provided below is the year-end balance sheet for ABC corporation. (08 Marks) ABC Corporation Balance Sheet Assets Liabilities and Stockholders Equity Cash 40,000 A/c Payable

Provided below is the year-end balance sheet for ABC corporation. (08 Marks) ABC Corporation Balance Sheet Assets Liabilities and Stockholders Equity Cash 40,000 A/c Payable ? A/c Receivable ? Long-Term Debt 200,000 Inventory ? Common stock ? Fixed assets Less: Acc dep. (200,000) ? Retained Earnings 50,000 Total Assets ? Total Liabilities and Stockholders Equity ? Calculate missing information in above balance sheet using the following supporting data: a. Accumulated depreciation is 40% of fixed assets cost. b. No. of outstanding shares is 20,000 with par value Rs.10 c. Current ratio is 4.75 and quick ratio is 2.25 while working capital is Rs.150,000. d. Inventory turnover is 3 times and accounts receivable turnover is 10 times while annual sales is Rs.500,000 and cost of goods sold is Rs.300,000. e. Assume that ending inventory and ending receivable amount is equal to average inventory and average receivable.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Accounting A User Perspective

Authors: Suadagaran, Shahrokh M, Smith Lawrence Murphy

5th Edition

1531018661, 9781531018665

More Books

Students also viewed these Accounting questions