LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 $19,600...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 $19,600 $15,450 1,000 $18,600 $15,350 Gross sales Sales returns and allowances 100 Net sales Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative 11,850 $ 6,750 $ 6,500 8,850 $ 2,650 760 $ 630 2,300 Research 610 530 Miscellaneous 420 330 $ 4,440 $ 3,790 $ 2,310 $ 2,710 Total operating expenses Income before interest and taxes Interest expense 620 530 Income before taxes $ 1,690 $ 2,180 Provision for taxes 676 872 Net income $ 1,014 $ 1,308 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 Assets Current assets: $12,300 $ 9,300 16,800 8,800 24,300 $62, 200 $46,700 Cash Accounts receivable Merchandise inventory Prepaid expenses 12,800 14,300 10,300 Total current assets Plant and equipment: Building (net) $14,800 $11,300 13,800 $28,600 $20,600 Land 9,300 Total plant and equipment Total assets $90,800 $67,300 Liabilities Current liabilities: $13,300 $ 7,500 Accounts payable Salaries payable 7,300 5,300 Total current liabilities $20,600 $12,800 Long-term liabilities: Mortgage note payable 22,300 20,800 Total liabilities $42,900 $33,600 Stockholders' Equity Common stock $21,500 $21, 200 Retained earnings 26,400 12,500 Total stockholders' equity $47,900 $33,700 Total liabilities and stockholders' equity $90,800 $67,300 Calculate the acid test ratio. (Round your answers to the nearest hundredth.) 2018 2017 Acid test ratio LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 $19,600 $15,450 1,000 $18,600 $15,350 Gross sales Sales returns and allowances 100 Net sales Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative 11,850 $ 6,750 $ 6,500 8,850 $ 2,650 760 $ 630 2,300 Research 610 530 Miscellaneous 420 330 $ 4,440 $ 3,790 $ 2,310 $ 2,710 Total operating expenses Income before interest and taxes Interest expense 620 530 Income before taxes $ 1,690 $ 2,180 Provision for taxes 676 872 Net income $ 1,014 $ 1,308 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 Assets Current assets: $12,300 $ 9,300 16,800 8,800 24,300 $62, 200 $46,700 Cash Accounts receivable Merchandise inventory Prepaid expenses 12,800 14,300 10,300 Total current assets Plant and equipment: Building (net) $14,800 $11,300 13,800 $28,600 $20,600 Land 9,300 Total plant and equipment Total assets $90,800 $67,300 Liabilities Current liabilities: $13,300 $ 7,500 Accounts payable Salaries payable 7,300 5,300 Total current liabilities $20,600 $12,800 Long-term liabilities: Mortgage note payable 22,300 20,800 Total liabilities $42,900 $33,600 Stockholders' Equity Common stock $21,500 $21, 200 Retained earnings 26,400 12,500 Total stockholders' equity $47,900 $33,700 Total liabilities and stockholders' equity $90,800 $67,300 Calculate the acid test ratio. (Round your answers to the nearest hundredth.) 2018 2017 Acid test ratio
Expert Answer:
Answer rating: 100% (QA)
The formula for Average days collection ratio is Average days collection 360 Accounts receivable... View the full answer
Related Book For
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
Posted Date:
Students also viewed these accounting questions
-
CRANE COMPANY Income Statements For the Years Ended December 31 2017 2016 Net sales $1,896,140 $1,756,100 Cost of goods sold 1,064,140 1,011,600 Gross profit 832,000 744,500 Selling and...
-
Rivera Company Partial Comparative Income Statements For the Years Ended December 31 2014 and 2013 2014 2013 Net sales 424000 368000 Cost of goods sold 254400 239200 Gross margin 169600 128800...
-
The comparative income statement for Chung Corporation at the end of December 31, 2010, provided the following summarized pretax data: Included in the 2010 data is a $4,000 revenue that was taxable...
-
Middleton Spas provides the following data for the year just ended on December 31. Requirement Prepare the operating activities section of Middleton Spas' statement of cash flows for the year just...
-
The American Automobile Association (AAA) reported that families planning to travel over the Labor Day weekend would spend an average of $749 (The Associated Press, August 12, 2012). Assume that the...
-
It is well known that a college education, on average, increases ones income. Economists estimate that over ones lifetime, a college degree holder will earn on average almost 70 percent more than...
-
Define creep. What are its stages?
-
The director of project management calls you into his office and informs you that one of your fellow project managers has had a severe heart attack midway through a project. You will be taking over...
-
How is Islamic banking different from Conventional banking? Please provide an example. Explain the main products offered by the Islamic Banks. provide some examples.
-
(a) Using the Consolidated Balance Sheets for Walgreen Co. for August 31, 2013 and 2012, prepare a common-size balance sheet. (b) Which current asset is the most significant? Which noncurrent asset...
-
Let F = {(x, y) E R? 2x4 + y < xy}. Show that F is bounded and closed.
-
List five or six areas, where you can design a pattern for anxiety.
-
Define the trust stable analysis pattern.
-
For a series RLC circuit, charge at time \(t\) is given as \(q(t)=Q e^{-R t / 2 L} \cos \left(\omega^{\prime} t+\phi ight)\), where \(Q\) is the amplitude at time \(t=0\). If \(R=2 \Omega, C=2.3 \mu...
-
In spite of having the same meaning as dignity, why is worthiness rarely used as a substitute of it?
-
What lessons have you learnt by studying the trust pattern?
-
Project A is opening a bakery at 10 Centre Street. Project B is opening a specialty coffee shop at the same address. Both projects have unconventional cash flows, that is, both projects have positive...
-
Question 2 For an n x n matrix A = form) via (aij)
-
AtHome Fixtures Company manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Manufacturing has 80 employees. Each employee presently provides 36 hours of labor per...
-
Hushpuppy Company purchased merchandise on account from a supplier for $6,750, terms 2/10, n/30. Hushpuppy Company returned $1,500 of the merchandise and received full credit. a. If Hushpuppy Company...
-
A business issued a 60-day, 7% note for $15,000 to a creditor on account. Journalize the entries to record (a) The issuance of the note and (b) The payment of the note at maturity, including interest.
-
Describe the nature and significance of the biology plus approach to establishing parental rights for unwed fathers.
-
Identify and describe the three primary ways of establishing legal parentage.
-
Identify the three parties with the strongest interests in parentage determinations and describe the nature of those interests.
Study smarter with the SolutionInn App