a. All sales during the year were on account. b. There was no change in the number of shares of common stock outstanding during the year. c. The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change during the year. d. Selected balances at the beginning of the current year were: Accounts receivable Inventory Total assets e. Selected financial ratios computed from the statements below for the current year are: Earnings per share. Debt-to-equity ratio Accounts receivable turnover Current ratio Return on total assets Times interest earned ratio Acid-test ratio. Inventory turnover Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Liabilities: Required: Compute the missing amounts on the company's financial statements. (Hint: What's the difference between the acid-test ratio and the current ratio?) (Do not round intermediate calculations.) Current assets: Cash Accounts receivable, net Inventory Total current assets. Plant and equipment, net Total assets $ 140,000 $ 260,000 $ 2,370,000 Answer is complete and correct. Pepper Industries Income Statement For the Year Ended March 31 Current liabilities Bonds payable, 10% $ 2.64 0.850 16.0 2.40 Total liabilities Stockholders' equity: Common stock, $3.00 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity. 10% 6.25 1.17 > Answer is complete but not entirely correct. Pepper Industries Balance Sheet March 31 $ 2,900,000 2,220,800✔ 679,200✔ 404,200✔ 275,000 44,000 231,000✔ 69,300✔ $ 161,700 ✓ $ 58,300✔ 222,500 295,200✔ 576,000 ✓ 1,566,694 X $ 2,718,694 X $ 240,000 440,000 680,000✔ 517,647 X 161,700 X 679,347 X $ 2,718,694 X

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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Please only solve for the balance sheet. I've attached the image for the problem

a. All sales during the year were on account.
b. There was no change in the number of shares of common stock outstanding during the year.
c. The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change
during the year.
d. Selected balances at the beginning of the current year were:
Accounts receivable
Inventory
Total assets
e. Selected financial ratios computed from the statements below for the current year are:
Earnings per share.
Debt-to-equity ratio
Accounts receivable turnover
Current ratio
Return on total assets
Times interest earned ratio
Acid-test ratio.
Inventory turnover
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses
Net operating income
Interest expense
Net income before taxes
Income taxes (30%)
Net income
Liabilities:
Required:
Compute the missing amounts on the company's financial statements. (Hint: What's the difference between the acid-test ratio and the
current ratio?) (Do not round intermediate calculations.)
Current assets:
Cash
Accounts receivable, net
Inventory
Total current assets.
Plant and equipment, net
Total assets
$ 140,000
$ 260,000
$ 2,370,000
Answer is complete and correct.
Pepper Industries
Income Statement
For the Year Ended March 31
Current liabilities
Bonds payable, 10%
$ 2.64
0.850
16.0
2.40
Total liabilities
Stockholders' equity:
Common stock, $3.00 par value
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity.
10%
6.25
1.17
> Answer is complete but not entirely correct.
Pepper Industries
Balance Sheet
March 31
$ 2,900,000
2,220,800✔
679,200✔
404,200✔
275,000
44,000
231,000✔
69,300✔
$ 161,700 ✓
$
58,300✔
222,500
295,200✔
576,000 ✓
1,566,694 X
$ 2,718,694 X
$ 240,000
440,000
680,000✔
517,647 X
161,700 X
679,347 X
$ 2,718,694 X

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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