The December 31, 2019, balance sheet for Burdette Corporation is presented here. These are the only accounts on Burdette's balance sheet. 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)................................. 352,800
...........................................................................$ 518,400
Liabilities and Stockholders' Equity
Accounts payable (trade)...................................................$ ?
Income taxes payable (current)....................................... 30,000
Long-term debt................................................................ ?
Common stock......................................................... 360,000
Retained earnings............................................................ ?
.................................................................................$ ?
Additional Information
Current ratio (at year end)........................................ 1.5 to 1.0
Total liabilities ÷ Total stockholders' equity........................ 80%
Gross margin percentage............................................... 30%
Inventory turnover (Cost of goods sold ÷
Ending inventory)................................................ 10.5 times
Gross margin for 2019............................................ $ 378,000
Required
Determine the following:
a. The balance in trade accounts payable as of December 31, 2019.
b. The balance in retained earnings as of December 31, 2019.
c. The balance in the inventory account as of December 31, 2019. (Assume that the level of inventory did not change from last year.)