Question

December 31, 2015, balance sheet data for Patel Company follow. All accounts are represented. Amounts indicated by question marks (?) can be calculated using the following additional information.
Assets
Cash ................. $ 30,000
Accounts receivable (net) ......... ?
Inventory ............... ?
Property, plant, and equipment (net) ...... 556,000
$ ?
Liabilities and Stockholders’ Equity
Accounts payable (trade) ......... $ 52,000
Income taxes payable (current) ........ 28,000
Long-term debt ............. ?
Common stock ............. 320,000
Retained earnings ............ ?
$ ?
Additional Information
Quick ratio (at year end) ......... 1.3 to 1
Working capital .............. $84,000
Inventory turnover (cost of goods sold ÷
ending inventory) ............ 12 times
Debt/equity ratio ............. 80%
Gross margin for 2015 .......... $252,000

Required
Determine the following:
a. The balance in accounts receivable as of December 31, 2015.
b. The turnover of assets for 2015.
c. The balance of long-term debt as of December 31, 2015.
d. The balance in retained earnings as of December 2015.



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  • CreatedFebruary 07, 2014
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