Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The 2020 financial statements of Outdoor Waterworks Inc, follow 104.01 Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2020 Net sales $1,016,000 Cost

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The 2020 financial statements of Outdoor Waterworks Inc, follow 104.01 Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2020 Net sales $1,016,000 Cost of goods sold: Inventory, Dec. 31, 2019 $ 77,860 Purchases 605,840 Goods available for sale $ 683,700 Inventory, Dec. 31, 2020 59,790 Cost of goods sold 623,910 Gross profit from sales 392,090 Operating expenses 278, 360 Operating profit $ 113,730 Interest expense 11,900 Profit before taxes $ 101,830 Income taxes 19, 114 Profit 82,716 $ $ TA Outdoor Waterworks Inc. Balance Sheet December 31, 2020 Assets Cash Current non-strategic investments Accounts receivable, net Notes receivable $ 22,700 25,080 52,580 11,860 59,798 Pratit 32,216 6 8 0103:52 outdoor waterworks Inc. alance Sheet December 31, 2020 Assets Cash $ 22,790 Current non-strategic investments 25,080 Accounts receivable, net 52,580 Notes receivable 11,060 Inventory 59,790 Prepaid expenses 5,860 Plant and equipment, net 329,020 Total assets $506,090 Liabilities and Equity Accounts payable $ 49,40 Accrued wages payable 6,340 Income taxes payable 7,110 Long-term note payable, secured by mortgage on plant 115,500 Common shares, 160,000 shares 194,500 Retained earnings 133,600 Total liabilities and equity $506,090 Assume all sales were on credit. Also assume the long-term note payable is due 2019, balance sheet, the assets totalled $435,220, common shares were $194.5 Required: Calculate the following: (Use 365 days in a year. Do not round your intermedie Total assets 3.506,090 Liabilities and Equity Accounts payable $ 49,040 Accrued wages payable fi, 140 Income taxes payable 7,119 Long-term note payable, secured by mortgage on plant 115.500 Common shares, 160,000 shares 194,500 Retained earnings 133,600 Total Habilities and equity $506,090 Assume all sales were on credit. Also assume the long-term note payable is due in 2023, with no current portion. On the Dec 2019, balance sheet, the assets totalled $435,220, common shares were $194,500, and retained earnings were $109140. Required: Calculate the following: (Use 365 days in a year. Do not round your intermediate calculations. Round the answers to 2 de

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

Audit Guide Audit Sampling

Authors: AICPA

2nd Edition

195068833X, 978-1950688333

More Books

Students also viewed these Accounting questions