Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The balance sheets for Company B and additional information are provided below. COMPANY B Balance Sheets December 31, Year 2 and Year 1 Year 2

image text in transcribed
The balance sheets for Company B and additional information are provided below. COMPANY B Balance Sheets December 31, Year 2 and Year 1 Year 2 Year 2 $ 200,600 $ 127,000 92,000 99,000 102,000 87,000 4,700 2,700 Assets Current assets: Cash Accounts receivable Inventory Investments Long-term assets: Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term Liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 550,000 550,000 860,000 740,000 (498,000) (338,000) $1,311,300 $1,267,700 Ant $ 106,000 $ 6,500 8,500 92,000 12,790 5,700 Grences 110,000 220,000 770,000 770,000 310,300 167, 308 $1,311,300 $1,267,700 Additional information for Year 2: 1. Net income is $143,000. 2. Sales on account are $1,776,300 3. Cost of goods sold is $1,323,000. Required: 1. Calculate the following risk ratios for Year 2: (Round your answers to 1 decimal place.) The balance sheets for Company B and additional information are provided below. COMPANY B Balance Sheets December 31, Year 2 and Year 1 Year 2 Year 2 $ 200,600 $ 127,000 92,000 99,000 102,000 87,000 4,700 2,700 Assets Current assets: Cash Accounts receivable Inventory Investments Long-term assets: Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term Liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 550,000 550,000 860,000 740,000 (498,000) (338,000) $1,311,300 $1,267,700 Ant $ 106,000 $ 6,500 8,500 92,000 12,790 5,700 Grences 110,000 220,000 770,000 770,000 310,300 167, 308 $1,311,300 $1,267,700 Additional information for Year 2: 1. Net income is $143,000. 2. Sales on account are $1,776,300 3. Cost of goods sold is $1,323,000. Required: 1. Calculate the following risk ratios for Year 2: (Round your answers to 1 decimal place.)

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_2

Step: 3

blur-text-image_3

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

Financial Accounting, Enhanced

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

11th Edition

1119594596, 9781119594598

More Books

Students also viewed these Accounting questions

Question

Identify and describe each of the major HRD functions

Answered: 1 week ago

Question

Cite some of the contemporary challenges facing HRD professionals

Answered: 1 week ago