The December 31, Year 4, balance sheet for Stuart Corporation is presented here. These are the only
Question:
The December 31, Year 4, balance sheet for Stuart Corporation is presented here. These are the only accounts on Stuart’s balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information:
STUART CORPORATION Balance Sheet As of December 31, Year 4 | |||
Assets | |||
Cash | $ | 30,000 | |
Accounts receivable (net) | ? | ||
Inventory | ? | ||
Property, plant, and equipment (net) | 304,000 | ||
$ | 460,000 | ||
Liabilities and Stockholders’ Equity | |||
Accounts payable (trade) | $ | ? | |
Income taxes payable (current) | 30,000 | ||
Long-term debt | ? | ||
Common stock | 310,000 | ||
Retained earnings | ? | ||
$ | ? | ||
Additional Information | |||
Current ratio (at year end) | 1.5 to 1.0 | ||
Total liabilities ÷ Total stockholders’ equity | 60 | % | |
Gross margin percentage | 30 | % | |
Inventory turnover (Cost of goods sold ÷ Ending inventory) | 11.2 | times | |
Gross margin for Year 4 | $ | 420,000 | |
Required
a. Compute the balance in trade accounts payable as of December 31, Year 4.
b. Compute the balance in retained earnings as of December 31, Year 4.
c. Compute the balance in the inventory account as of December 31, Year 4. (Assume that the level of inventory did not change from last year.)
(For all requirements, negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
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Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds