The December 31, 2012, balance sheet for Kessler Corporation is presented here. These are the only accounts on Kessler€™s balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information.

Required
Determine the following.
a. The balance in trade accounts payable as of December 31, 2012.
b. The balance in retained earnings as of December 31, 2012.
c. The balance in the inventory account as of December 31, 2012. (Assume that the level of inventory did not change from last year.)

Transcribed Image Text:

Assets $ 25,000 Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) 294,000 $432,000 Liabilities and Stockholders' Equity Accounts payable (trade) Income taxes payable (current) Long-term debt 25,000 300,000 ? Common stock Retained earnings ? continued Additional Information Current ratio (at year end) Total liabilities : Total stockholders' equity Gross margin percent Inventory turnover (Cost of goods sold ÷ Ending inventory) Gross margin for 2012 1.5 to 1.0 80% 30% 10.5 times $ 315,000