Given the following data, reconstruct the balance sheet and the income statement of Libby Company for...
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Given the following data, reconstruct the balance sheet and the income statement of Libby Company for the year 2018: 1. Acid test ratio was 1.3 to 1 2. Gross profit was 35% of net sales 3. The age of receivables was 36 days 4. Inventory turnover was 4 times. Beginning inventory, P250,000 5. Total debt to stockholder's equity was .8 to 1 6. Operating expenses were 15% of sales 7. Times interest earned was 6 times 8. Beginning accounts receivable was P160,000 9. Annual Business day is 360 days ASSETS Cash ? Marketable Securities 50,000 Accounts Receivable, ? net Inventories Plant Assets TOTAL ASSETS ? ? ? BALANCE SHEET LIABILITIES & EQUITY Less, Tax Expense (35% rate) Net Income after tax Current Liabilities ? Bonds Payable,12.5% long? term Common Stock Retained Earnings TOTAL LIABILITES & EQUITY INCOME STATEMENT ? ? Net Sales Less, Cost of goods sold. Gross profit on sales Less, Operating expenses Operating Income Less, Other Expense - Interest Expense Net Income before taxes ? ? ? ? ? 525,000 ? 500,000 300,000 ? Given the following data, reconstruct the balance sheet and the income statement of Libby Company for the year 2018: 1. Acid test ratio was 1.3 to 1 2. Gross profit was 35% of net sales 3. The age of receivables was 36 days 4. Inventory turnover was 4 times. Beginning inventory, P250,000 5. Total debt to stockholder's equity was .8 to 1 6. Operating expenses were 15% of sales 7. Times interest earned was 6 times 8. Beginning accounts receivable was P160,000 9. Annual Business day is 360 days ASSETS Cash ? Marketable Securities 50,000 Accounts Receivable, ? net Inventories Plant Assets TOTAL ASSETS ? ? ? BALANCE SHEET LIABILITIES & EQUITY Less, Tax Expense (35% rate) Net Income after tax Current Liabilities ? Bonds Payable,12.5% long? term Common Stock Retained Earnings TOTAL LIABILITES & EQUITY INCOME STATEMENT ? ? Net Sales Less, Cost of goods sold. Gross profit on sales Less, Operating expenses Operating Income Less, Other Expense - Interest Expense Net Income before taxes ? ? ? ? ? 525,000 ? 500,000 300,000 ?
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Gross profit on sales is 35 Gross profit on sales is given as 525000 Net sales will be 525000 35 150... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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