Additional information:1.2.3.4.5.(a)(b)Compute the following for Waterway Corporation.(c)The inventory turnover is 3.8 times.The return on common stockholders' equity is 26%. The company had no additional capital accounts.The accounts receivable turnover is 8.7 times.(d)The return on assets is 12.5%.Total assets at December 31, 2021, were $593,000.Cost of goods sold for 2022Net credit sales for 2022.Net income for 2022Total assets at December 31, 2022$$$$ Waterway Corporation experienced a fire on December 31, 2022, in which its financial records were partially destroyed. It has beenable to salvage some of the records and has ascertained the following balances.CashAccounts receivable (net)InventoryAccounts payableNotes payableCommon stock, $100 parRetained earningsDecember 31,2022$ 27,00074,500199,00047,00027,500399,000118,000December 31,2021$ 14,500125,000185,0091,00057,000399,000107,000

Through the ratios which company maintains each year like what should be the gross profit ratio or…

Answered: (a) (b) (c) (d) Cost of goods sold for…

(a) (b) (c) (d) Cost of goods sold for 2022 Net credit sales for 2022. Net income for 2022 Total assets at December 31, 2022 $ tA tA tA $ tA

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Additional information:
1.
2.
3.
4.
5.
(a)
(b)
Compute the following for Waterway Corporation.
(c)
The inventory turnover is 3.8 times.
The return on common stockholders' equity is 26%. The company had no additional capital accounts.
The accounts receivable turnover is 8.7 times.
(d)
The return on assets is 12.5%.
Total assets at December 31, 2021, were $593,000.
Cost of goods sold for 2022
Net credit sales for 2022.
Net income for 2022
Total assets at December 31, 2022
$
$
$
$

Waterway Corporation experienced a fire on December 31, 2022, in which its financial records were partially destroyed. It has been
able to salvage some of the records and has ascertained the following balances.
Cash
Accounts receivable (net)
Inventory
Accounts payable
Notes payable
Common stock, $100 par
Retained earnings
December 31,
2022
$ 27,000
74,500
199,000
47,000
27,500
399,000
118,000
December 31,
2021
$ 14,500
125,000
185,00
91,000
57,000
399,000
107,000

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