Question
WILDHORSE COMPANY Balance Sheets December 31 Assets 2017 2016 Cash $ 70,000 $ 68,000 Debt investments (short-term) 51,000 40,000 Accounts receivable 109,000 91,000 Inventory 231,000
WILDHORSE COMPANY Balance Sheets December 31 | ||||
---|---|---|---|---|
Assets | 2017 | 2016 | ||
Cash | $ 70,000 | $ 68,000 | ||
Debt investments (short-term) | 51,000 | 40,000 | ||
Accounts receivable | 109,000 | 91,000 | ||
Inventory | 231,000 | 167,000 | ||
Prepaid expenses | 27,000 | 26,000 | ||
Land | 134,000 | 134,000 | ||
Building and equipment (net) | 264,000 | 186,000 | ||
Total assets | $ 886,000 | $ 712,000 | ||
Liabilities and Stockholders Equity | ||||
Notes payable | $ 171,000 | $ 109,000 | ||
Accounts payable | 67,000 | 53,000 | ||
Accrued liabilities | 41,000 | 41,000 | ||
Bonds payable, due 2017 | 250,000 | 170,000 | ||
Common stock, $10 par | 206,000 | 206,000 | ||
Retained earnings | 151,000 | 133,000 | ||
Total liabilities and stockholders equity | $ 886,000 | $ 712,000 |
WILDHORSE COMPANY Income Statements For the Years Ended December 31 | ||||
---|---|---|---|---|
2017 | 2016 | |||
Sales revenue | $ 899,000 | $ 798,000 | ||
Cost of goods sold | 650,000 | 575,000 | ||
Gross profit | 249,000 | 223,000 | ||
Operating expenses | 192,000 | 168,000 | ||
Net income | $ 57,000 | $ 55,000 |
Additional information:
1. | Inventory at the beginning of 2016 was $ 117,000. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2. | Accounts receivable (net) at the beginning of 2016 were $ 90,000. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3. | Total assets at the beginning of 2016 were $ 634,000. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4. | No common stock transactions occurred during 2016 or 2017. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5. | All sales were on account. Given below are three independent situations and a ratio that may be affected. For each situation, compute the affected ratio (1) as of December 31, 2017, and (2) as of December 31, 2018, after giving effect to the situation. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%. If % change is a decrease show the numbers as negative, e.g. -1.83% or (1.83%).)
2017 2018 % Change
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