List of accounts as of Dec. 31, 2022 of MAN Corporation follow. (All sales were on...

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List of accounts as of Dec. 31, 2022 of MAN Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2021 for inventory was $17,800. List of accounts Accounts payable Accounts receivable Accumulated depreciation Advertising expense 1,700 Allowance for uncollectible accounts 3,500 Cash 32.150 Common Stock 70,835 Computer supplies 2,425 Cost of goods sold 15,000 8,600 Delivery expense Insurance expense- office building Interest expense Interest revenue Inventory 7,000 29,470 30,000 Land Loss on the sale of equipment Notes payable (due in 2 years) Notes receivable (due in 2 months) Office equipment Office salaries expense Prepaid insurance Repairs expense-Office computer Retained earnings Dec. 31, 2022 Salaries payable Sales discounts Sales returns and allowances Sales revenue Sales salaries expense Short term investment Store supplies expense Uneamed revenue 600 950 1,350 20,000 30,000 220 35,000 17,420 64,000 2,945 1,860 800 27,290 12,000 3,500 2,300 50,800 1,700 3,300 3.500 15,000 Required: a- Prepare multiple-step income statement and classified balance sheet of the company as of Dec.31, 2022. b- Compute the followings: (1) current ratio, (2) quick ratio, (3) receivable turnover, (4) collection period, (5) inventory turnover 6) days of inventory on hand, (7) debt ratio, (8) debt-to-equity ratio (9) gross profit ratio c- You determine that the following ratios are typical of companies in MAN Corp.'s industry. 3.00 Current ratio. Quick ratio Days in inventories Debt to equity 2.00 20 days 0.55 Evaluate the situation of the company by comparing with industry average List of accounts as of Dec. 31, 2022 of MAN Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2021 for inventory was $17,800. List of accounts Accounts payable Accounts receivable Accumulated depreciation Advertising expense 1,700 Allowance for uncollectible accounts 3,500 Cash 32.150 Common Stock 70,835 Computer supplies 2,425 Cost of goods sold 15,000 8,600 Delivery expense Insurance expense- office building Interest expense Interest revenue Inventory 7,000 29,470 30,000 Land Loss on the sale of equipment Notes payable (due in 2 years) Notes receivable (due in 2 months) Office equipment Office salaries expense Prepaid insurance Repairs expense-Office computer Retained earnings Dec. 31, 2022 Salaries payable Sales discounts Sales returns and allowances Sales revenue Sales salaries expense Short term investment Store supplies expense Uneamed revenue 600 950 1,350 20,000 30,000 220 35,000 17,420 64,000 2,945 1,860 800 27,290 12,000 3,500 2,300 50,800 1,700 3,300 3.500 15,000 Required: a- Prepare multiple-step income statement and classified balance sheet of the company as of Dec.31, 2022. b- Compute the followings: (1) current ratio, (2) quick ratio, (3) receivable turnover, (4) collection period, (5) inventory turnover 6) days of inventory on hand, (7) debt ratio, (8) debt-to-equity ratio (9) gross profit ratio c- You determine that the following ratios are typical of companies in MAN Corp.'s industry. 3.00 Current ratio. Quick ratio Days in inventories Debt to equity 2.00 20 days 0.55 Evaluate the situation of the company by comparing with industry average

Answer rating: 100% (QA)

MultipleStep Income Statement Account Amount Sales revenue 50 Sales returns and allowances 2300 Net sales 47700 Cost of goods sold 15000 Gross profit 32700 Advertising expense 1700 Delivery expense 86... View the full answer