Below is a comparative balance sheet for Summer Days Corporation: Current assets: Cash$ 140,000$ 90,000 Short-term investments
Fantastic news! We've Found the answer you've been seeking!
Question:
Below is a comparative balance sheet for Summer Days Corporation:
Transcribed Image Text:
Current assets: Cash$ 140,000$ 90,000 Short-term investments 90,00080,000 Accounts receivable, net350,000220,000 Inventory 500,000430,000 Prepaid expenses30,00030,000 Total current assets$1,110,000$ 850,000 Property, plant, and equipment, net750,000500,000 Other assets280,000300,000 Total assets$2,140,000$1,650,000 Summer Days Corporation Comparative Balance Sheet December 31, 2019 and 2018 20192018 Current liabilities: Short-term notes payable$650,000$670,000 Accounts payable200,000225,000 Total current liabilities$850,000$895,000 Non-current debt380,000220,000 Total liabilities $1,230,000$1,115,000 Shareholders' equity: Common shares$500,000$500,000 Retained earnings410,00035,000 I Total shareholders' equity$ 910,000$535,000 Total liabilities and shareholders' equity$2,140,000$1,650,000 Notes: Net sales (all on credit) and cost of goods sold for the year ended December 31, 2019, were $2,000,000 and $1,200,000, respectively. The number of common shares outstanding has been 50,000 since the company began operations. Required: Calculate the following ratios for the year ended December 31, 2019: a. current ratio b. acid-test ratio c. inventory turnover d. accounts receivable turnover e. debt ratio f. book value per common share of stock Dago Rroak Current assets: Cash$ 140,000$ 90,000 Short-term investments 90,00080,000 Accounts receivable, net350,000220,000 Inventory 500,000430,000 Prepaid expenses30,00030,000 Total current assets$1,110,000$ 850,000 Property, plant, and equipment, net750,000500,000 Other assets280,000300,000 Total assets$2,140,000$1,650,000 Summer Days Corporation Comparative Balance Sheet December 31, 2019 and 2018 20192018 Current liabilities: Short-term notes payable$650,000$670,000 Accounts payable200,000225,000 Total current liabilities$850,000$895,000 Non-current debt380,000220,000 Total liabilities $1,230,000$1,115,000 Shareholders' equity: Common shares$500,000$500,000 Retained earnings410,00035,000 I Total shareholders' equity$ 910,000$535,000 Total liabilities and shareholders' equity$2,140,000$1,650,000 Notes: Net sales (all on credit) and cost of goods sold for the year ended December 31, 2019, were $2,000,000 and $1,200,000, respectively. The number of common shares outstanding has been 50,000 since the company began operations. Required: Calculate the following ratios for the year ended December 31, 2019: a. current ratio b. acid-test ratio c. inventory turnover d. accounts receivable turnover e. debt ratio f. book value per common share of stock Dago Rroak
Expert Answer:
Answer rating: 100% (QA)
The image displays a comparative balance sheet for Summer Days Corporation for the years ending on December 31 2019 and December 31 2018 To calculate the requested financial ratios for the year ended ... View the full answer
Related Book For
College Accounting Chapters 1-30
ISBN: 978-1259631115
15th edition
Authors: John Price, M. David Haddock, Michael Farina
Posted Date:
Students also viewed these accounting questions
-
For Home Depot and Lowe's is there any capital leases in existent and reported on the balance sheet if so what are the amounts? Even though the balance sheet may not separately disclose a capital...
-
1. If the average collection period is 28 days and working days in a year is 365, the receivables turnover is _____ times. 2. What is the Forecast Cost at Completion (FCC) of a project budget of...
-
The comparative balance sheet for EProducts, Inc., as of December 31, 2019 and 2018, is shown below, followed by the condensed income statement for 2019. INSTRUCTIONS Prepare a statement of cash...
-
On January 26, Nova Co. borrowed cash from Conrad Bank by issuing a 30-day note with a face amount of $60,000. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries...
-
Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labor; hence, there are no traceable fixed costs. Common fixed costs equal $30,000....
-
Define outsourcing and the market entry strategies of exporting and partnerships. Getting Started Internationally
-
Given the random variables \[ \begin{aligned} & U=\cos \Theta \\ & V=\sin \Theta \end{aligned} \] with \[ p_{\Theta}(\theta)= \begin{cases}1 / \pi & -\frac{\pi}{2}
-
Indicate whether each of the following actions relates to (a) Managing liquidity and cash flows, (b) Recognition of liabilities, (c) Valuation of liabilities, (d) Classification of liabilities, or...
-
Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outstanding as of the beginning of 2024. Power Drive has the...
-
Peter Piper has applied for a mortgage of $120,000. Interest is computed at 8.5 percent compounded semiannually. The mortgage will be paid off over 20 years. a. Calculate Peter's monthly payment. b....
-
Consider the following consumption and investment data for a private closed economy. Figures are in billions of dollars. C=30+.8Y /= 20 Refer to the data. In equilibrium, the level of gross domestic...
-
How would you rate your experience in working with a high-performing organization? What did the company do well, or could it have done better?
-
Koebel Corporation uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor hours. For the upcoming year, Koebel Corporation estimated total...
-
1. A long rectangular plate has a width of 100 mm, thickness of 5 mm and an axial load of 150 kN. If the plate is made of titanium Ti-6AL-4V, (Kc=115 MPa-m, , Oys=910 MPa). What is the factor of...
-
Given: (x is number of items) Demand function: d(x) = 400 400 0.5 Supply function: s(x) = 0.3x Find the equilibrium quantity: Find the consumers surplus at the equilibrium quantity: Preview Preview
-
If f(x) = x + 5x-2, simplify each of the following. f(x + h) = f(x+h) f(x) =
-
The balance sheets for Company B and additional information are provided below. COMPANY B Balance Sheets December 31, Year 2 and Year 1 Assets Current assets: Cash Accounts receivable Inventory...
-
Find the radius of convergence of? 1.2.3 1.3.5 (2n-1) r2n+1 -1
-
The board of directors of ACR Corporation authorized the issuance of $1,000,000 face value, 6 percent bonds. The bonds mature 10 years from their issue date of March 1, 2019. The interest is payable...
-
At the beginning of the year, it became obvious that the truck purchased the year before was too small to handle many of Laurels jobs. On January 4, 2020, Laurel traded in the old truck on a new,...
-
Edmond Veal operates a store that sells paintings and portraits by local artists. Veal has agreed to enter into a partnership with Sarah Cobb, effective January 1, 2019. The new firm will be called...
-
How does risk affect the financial management of sport organizations?
-
Describe the process of determining a nominal interest rate.
-
Of MLB, the NBA, and the NHL, which league has the most risk, and which has the least? Why?
Study smarter with the SolutionInn App