Question
Question 2 a) Canadian Bacon Inc. financial statements are presented in the table below. Based on the information in the table, and using cost of
Question 2 |
a) Canadian Bacon Inc. financial statements are presented in the table below.
Based on the information in the table, and using cost of goods sold and a 365-day year, calculate Days of Sales in Inventory (using cost of goods sold).
Round the answers to two decimal places
Balance Sheet December 31, 2011
Cash and marketable securities | $143,000 | Accounts payable | $278,000 |
Accounts receivable | $354,000 | Notes payable | $87,000 |
Inventories | $672,000 | Accrued expenses | $65,000 |
Prepaid expenses | $12,500 | Total current liabilities | $430,000 |
Total current assets | $1,181,500 | Long-term debt | $284,000 |
Gross fixed assets | $1,675,000 | Par value and paid-in-capital | $228,000 |
Less: accumulated depreciation | $500,000 | Retained Earnings | $1,414,500 |
Net fixed assets | $1,175,000 | Common Equity | 1,642,500 |
Total assets | $2,356,500 | Total liabilities and owners equity | $2,356,500 |
Income Statement Year of 2011
Net sales (all credit) | $3,136,600.00 |
Less: Cost of goods sold | $2,195,620.00 |
Selling and administrative expenses | $345,000.00 |
Depreciation expense | $146,000.00 |
EBIT | $449,980.00 |
Interest expense | $45,300.00 |
Earnings before taxes | $404,680.00 |
Income taxes | $161,872.00 |
Net income | $242,808.00 |
Answer:
(111.71) |
Average Credit Sales per Day |
Question 3 |
a) Canadian Bacon Inc. financial statements are presented in the table below.
Based on the information in the table, and using a 365-day year, calculate Average Credit Sales per Day.
Round the answers to two decimal places
Balance Sheet December 31, 2012
Cash and marketable securities | $198,000 | Accounts payable | $288,000 |
Accounts receivable | $469,000 | Notes payable | $65,000 |
Inventories | $577,000 | Accrued expenses | $84,000 |
Prepaid expenses | $15,700 | Total current liabilities | $437,000 |
Total current assets | $1,259,700 | Long-term debt | $237,000 |
Gross fixed assets | $1,954,000 | Par value and paid-in-capital | $199,000 |
Less: accumulated depreciation | $476,000 | Retained Earnings | $1,864,700 |
Net fixed assets | $1,478,000 | Common Equity | 2,063,700 |
Total assets | $2,737,700 | Total liabilities and owners equity | $2,737,700 |
Income Statement, Year of 2012
Net sales (all credit) | $7,546,600.00 |
Less: Cost of goods sold | $6,112,746.00 |
Selling and administrative expenses | $349,000.00 |
Depreciation expense | $145,000.00 |
EBIT | $939,854.00 |
Interest expense | $49,500.00 |
Earnings before taxes | $890,354.00 |
Income taxes | $356,141.60 |
Net income | $534,212.40 |
Answer:
(20,675.60) |
Days of Sales in Receivables |
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