Tumwater Canyon Campsites began operations on January 1, 2012. The following information is available at year-end. Assume
Question:
Tumwater Canyon Campsites began operations on January 1, 2012. The following information is available at year-end. Assume that all sales were on credit.
Net income $25,000 Return on sales 8%
Receivables turnover 8 Gross margin 40%
Inventory turnover 5 Quick ratio 50%
Accounts payable $200,000
REQUIRED:
Prepare an income statement and the current asset and current liability portions of the balance sheet for 2012. Current assets consist of cash, accounts receivable, and inventory. Accounts payable is Tumwater’s only current liability.
Accounts PayableAccounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Return on Sales Net Income Net Sales 08 25000 Net Sales Net Sales 312500 Cost of Goods Sold Net sale...View the full answer
