The financial statements of Gaines Company appear below: GAINES COMPANY Comparative Balance Sheet December 31, Assets...

   

Transcribed Image Text:

The financial statements of Gaines Company appear below: GAINES COMPANY Comparative Balance Sheet December 31, Assets Cash Short-term investments Accounts receivable (net) Inventory Property, plant and equipment (net) Total assets 2020 $ 25,000 15,000 50,000 50,000 260.000 $400.000 2019 $ 40,000 60,000 30,000 70,000 300.000 $500.000 Liabilities and stockholders' equity Accounts payable Short-term notes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity $ 20,000 30,000 90,000 150,000 110.000 $400.000 $ 30,000 90,000 160,000 150,000 70.000 $500.000 Net sales Cost of goods sold Gross profit Expenses Operating expenses Interest expense GAINES COMPANY Income Statement For the Year Ended December 31, 2020 Total expenses Income before income taxes Income tax expense Net income C. $400,000 240.000 160,000 $42,000 18.000 60.000 100,000 30,000 $ 70.000 Additional information: a. Cash dividends of $23,000 were declared and paid in 2020. b. Weighted-average number of shares of common stock outstanding during 2020 was 30,000 shares. Market value of common stock on December 31, 2020, was $21 per share. The financial statements of Gaines Company appear below: GAINES COMPANY Comparative Balance Sheet December 31, Assets Cash Short-term investments Accounts receivable (net) Inventory Property, plant and equipment (net) Total assets 2020 $ 25,000 15,000 50,000 50,000 260.000 $400.000 2019 $ 40,000 60,000 30,000 70,000 300.000 $500.000 Liabilities and stockholders' equity Accounts payable Short-term notes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity $ 20,000 30,000 90,000 150,000 110.000 $400.000 $ 30,000 90,000 160,000 150,000 70.000 $500.000 Net sales Cost of goods sold Gross profit Expenses Operating expenses Interest expense GAINES COMPANY Income Statement For the Year Ended December 31, 2020 Total expenses Income before income taxes Income tax expense Net income C. $400,000 240.000 160,000 $42,000 18.000 60.000 100,000 30,000 $ 70.000 Additional information: a. Cash dividends of $23,000 were declared and paid in 2020. b. Weighted-average number of shares of common stock outstanding during 2020 was 30,000 shares. Market value of common stock on December 31, 2020, was $21 per share.

Answer rating: 100% (QA)

Question 1 Current Ratio Current Assets Current Liabilitie... View the full answer