Question: Rao's Recycling Centre suffered a serious fire that destroyed most of the firm's accounting records. The following statements were reconstructed from the records that were
Rao's Recycling Centre suffered a serious fire that destroyed most of the firm's accounting records. The following statements were reconstructed from the records that were recovered, hut many of the amounts are missing:
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The following information is also available, to help you determine the missing amounts:
1. The company's profit margin ratio was 10% in both 2010 and 2011.
2. In both 2010 and 2011, the company's current assets were twice the amount of the current liabilities.
Required:
For each of the letters above, determine the missing dollar amount that will complete the financial statements.
2010 2011 Statement of earnings 180,000 Expenses Net Income 14,000 Retained earnings Opening Balance Net Income Dividends Ending Balance 18,000 5,000 20,000 Statement of financial position Current Assets Other Assets Total Assets Current Liabilities Long-Term Liabilities Total Liabilities Common Stock Retained Earnings Total Shareholders' Equity Total Equity and Liabilities 30,000 90,000 20,000 25,000 55,000 54,000 74,000
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