Question
The accounts information for 2019 is as follows: gross profit is $260,000, near-cash is $1,640, the amount of accounts payable is $10,000. Unfinished and unsold
The accounts information for 2019 is as follows: gross profit is $260,000,
near-cash is $1,640, the amount of accounts payable is $10,000. Unfinished and
unsold products are worth $60,000, accumulated depreciation is 15% of total gross
fixed assets. There is an outstanding 15-Year loan of $55,000, common stock at
par is $77,700 and retained earnings at the end of the year are $165,730. Fixed
cash operating expenses, variable operating expenses and depreciation are $21,000,
$16,000 and $15,000 respectively. Additionally, regarding stock, the paid in capi-
tal in excess of par is $0.15 per common stock. The number of common stock is
74,000. On the other hand, the cost of goods sold is $100,000. The preferred stock
dividend rate is 2% for a face-value stock value of $140,000. A 3-months term bank
loan of $4,110 is going to be paid off next month. Lands, buildings and equipment
were valued $400,000. Interest expenses are $1,000 and the tax rate is 21%. The
company has some assets as stocks and a 1-year-maturity bond worth $51,000 in
total. Finally, the amount of money that customers currently owe to the company
for goods that were purchased on 3-months credit is $11,000.
(a) Construct the income statement for this company at the end of the year 2019.
(b) Construct the balance-sheet statement for this company at the end of the year
2019.
(c) Calculate ROA and the quick ratio.
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