Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Skip to question [The following information applies to the questions displayed below.] The comparative financial statements prepared at December 31, 2015, for Prince

Required information

Skip to question

[The following information applies to the questions displayed below.]

The comparative financial statements prepared at December 31, 2015, for Prince Company showed the following summarized data:

2015 2014
Income statement:
Sales revenue $ 191,500 * $ 168,900
Cost of goods sold 113,200 101,700
Gross profit 78,300 67,200
Operating expenses and interest expense 57,700 54,700
Pretax income 20,600 12,500
Income tax 6,180 3,750
Net income $ 14,420 $ 8,750
Balance sheet:
Cash $ 4,600 $ 6,600
Accounts receivable (net) 15,100 16,300
Inventory 41,400 32,300
Operational assets (net) 46,700 37,600
$ 107,800 $ 92,800
Current liabilities (no interest) $ 15,800 $ 16,800
Long-term liabilities (10% interest) 44,500 44,500
Common stock (par $5) 29,300 29,300
Retained earnings 18,200 2,200
$ 107,800 $ 92,800
*One-third was credit sales.

2. By what amount did working capital change?

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

Step: 3

blur-text-image

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

Microeconomics Theory And Applications

Authors: Edgar K. Browning, Mark A. Zupan

10th Edition

0470128917, 9780470128916

More Books

Students also viewed these Accounting questions

Question

Name three ways to emphasize important ideas in sentences.

Answered: 1 week ago

Question

Who holds the power in recruitment and selection?

Answered: 1 week ago

Question

Explain the effectiveness of various selection methods

Answered: 1 week ago

Question

Explain the nature of attraction in recruitment

Answered: 1 week ago