Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 Gross sales Sales returns and allowances 2020 $21,400 2019 $16,800 1,000

image text in transcribedimage text in transcribedimage text in transcribed

LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 Gross sales Sales returns and allowances 2020 $21,400 2019 $16,800 1,000 100 Depreciation Research Miscellaneous Net sales Cost of merchandise (goods) sold Gross profit Operating expenses: Selling and administrative Total operating expenses $20,400 $16,700 11,400 8,400 $ 9,000 $ 8,300 $ 940 $ 720 4,000 790 3,200 620 600 420 $ 6,330 $ 4,960 Income before interest and taxes $ 2,670 Interest expense 800 Income before taxes Provision for taxes Net income $ 1,870 748 $ 1,122 $ 3,340 620 $ 2,720 1,088 $ 1,632 LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020 Assets 2020 2019 Current assets: Cash Accounts receivable Merchandise inventory Prepaid expenses Total current assets Plant and equipment: Building (net) Land Total plant and equipment Total assets Liabilities Current liabilities: $ 13,200 $ 10,200 17,700 13,700 9,700 15,200 25,200 11,200 $ 65,800 $50,300 $ 15,700 $ 12,200 14,700 10,200 $ 30,400 $ 22,400 $ 96,200 $ 72,700 Accounts payable Salaries payable Total current liabilities. Long-term liabilities: Mortgage note payable Total liabilities Stockholders' Equity $14,200 8,200 $ 8,200 6,200 $ 22,400 $ 14,400 23,200 $ 45,600 21,700 $ 36,100 E Long-term liabilities: Mortgage note payable Total liabilities Common stock Stockholders' Equity Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 23,200 21,700 $ 45,600 $36,100 $ 22,200 $22,100 28,400 14,500 $ 50,600 $36,600 $ 96,200 $ 72,700 Calculate the acid test ratio. (Do NOT enter your answer as a percentage (i.e., do not move the decimal two places to the right). Enter it as a proportion rounded to the nearest hundredth.) 2020 Acid test ratio 2019

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Theory and Practice

Authors: Eugene F. Brigham, Michael C. Ehrhardt

15th edition

130563229X, 978-1305632301, 1305632303, 978-0357685877, 978-1305886902, 1305886909, 978-1305632295

More Books

Students also viewed these Finance questions