Question 11

Panza Corporation experienced a fire on December 31, 2020, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following balances.

		December 31, 2020			December 31, 2019
Cash		$ 33,000			$ 10,500
Accounts receivable (net)		75,500			127,500
Inventory		202,000			185,000
Accounts payable		54,500			88,000
Notes payable		32,000			58,500
Common stock, $100 par		389,000			389,000
Retained earnings		109,000			109,000

Additional information:

1.		The inventory turnover is 2.4 times.
2.		The return on common stockholders equity is 23%. The company had no additional paid-in capital.
3.		The accounts receivable turnover is 7.7 times.
4.		The return on assets is 12.5%.
5.		Total assets at December 31, 2019, were $592,000.

Compute the following for Panza Corporation.

(a)		Cost of goods sold for 2020		$
(b)		Net credit sales for 2020.		$
(c)		Net income for 2020		$
(d)		Total assets at December 31, 2020		$