The December 31, Year 4, balance sheet for Vernon Corporation is presented here These are the only accounts on Vernons balance sheet Amounts indicated by question marks ( ) can be calculated using the following additional information VERNON CORPORATION Balance Sheet As of December 31, Year 4 Assets Cash $ 34,000 Accounts receivable (net) Inventory Property, plant, and equipment (net) 320,000 $ 410,000 Liabilities and Stockholders Equity Accounts payable (trade) $ Income taxes payable (current) 34,000 Long term debt Common stock 326,000 Retained earnings $ Additional Information Current ratio (at year end) 1 5 to 1 0 Total liabilities Total stockholders equity 60 Gross margin percentage 40 Inventory turnover (Cost of goods sold Ending inventory) 12 4 times Gross margin for Year 4 $ 341,000 Required a Compute the balance in trade accounts payable as of December 31, Year 4 b Compute the balance in retained earnings as of December 31, Year 4 c Compute the balance in the inventory account as of December 31, Year 4 (Assume that the level of inventory did not change from last year )

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The December 31, Year 4, balance sheet for Vernon Corporation is presented here. These are the only accounts on Vernons balance sheet. Amounts indicated by

The December 31, Year 4, balance sheet for Vernon Corporation is presented here. These are the only accounts on Vernons balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information:

VERNON CORPORATION Balance Sheet As of December 31, Year 4
Assets
Cash	$	34,000
Accounts receivable (net)		?
Inventory		?
Property, plant, and equipment (net)		320,000
	$	410,000
Liabilities and Stockholders Equity
Accounts payable (trade)	$	?
Income taxes payable (current)		34,000
Long-term debt		?
Common stock		326,000
Retained earnings		?
	$	?

Additional Information
Current ratio (at year end)	1.5 to 1.0
Total liabilities Total stockholders equity		60	%
Gross margin percentage		40	%
Inventory turnover (Cost of goods sold Ending inventory)		12.4	times
Gross margin for Year 4	$	341,000

Required a. Compute the balance in trade accounts payable as of December 31, Year 4. b. Compute the balance in retained earnings as of December 31, Year 4. c. Compute the balance in the inventory account as of December 31, Year 4. (Assume that the level of inventory did not change from last year.)