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Assets Cash FRANKLIN CORPORATION Balance Sheet As of December 31, Year 4 Accounts receivable (net) Inventory Property, plant, and equipment (net) Liabilities and Stockholders' Equity Accounts payable (trade) Income taxes payable (current) Long-term debt Common stock Retained earnings $ 32,000 310,000 $442,000 $ a. Accounts payable b. Retained earnings ? $ Additional Information Current ratio (at year end) Total liabilities + Total stockholders' equity Gross margin percentage 316,000 ? 32,000 Inventory turnover (Cost of goods sold + Ending inventory) Gross margin for Year 4 1.5 to 1.0 70% 40% 10.5 times $350,000 Required a. Compute the balance in trade accounts payable as of December 31, Year 4. b. Compute the balance in retained earnings as of December 31, Year 4. c. Compute the balance in the inventory account as of December 31, Year 4. (Assume that the level of inventory did not change from last year.) (For all requirements, negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round you answers to the nearest whole dollar amount.)

Assets Cash FRANKLIN CORPORATION Balance Sheet As of December 31, Year 4 Accounts receivable (net) Inventory Property, plant, and equipment (net) Liabilities and Stockholders' Equity Accounts payable (trade) Income taxes payable (current) Long-term debt Common stock Retained earnings $ 32,000 310,000 $442,000 $ a. Accounts payable b. Retained earnings ? $ Additional Information Current ratio (at year end) Total liabilities + Total stockholders' equity Gross margin percentage 316,000 ? 32,000 Inventory turnover (Cost of goods sold + Ending inventory) Gross margin for Year 4 1.5 to 1.0 70% 40% 10.5 times $350,000 Required a. Compute the balance in trade accounts payable as of December 31, Year 4. b. Compute the balance in retained earnings as of December 31, Year 4. c. Compute the balance in the inventory account as of December 31, Year 4. (Assume that the level of inventory did not change from last year.) (For all requirements, negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round you answers to the nearest whole dollar amount.)

FINANCIAL ACCOUNTING
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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Assets Cash FRANKLIN CORPORATION Balance Sheet As of December 31, Year 4 Accounts receivable (net) Inventory Property, plant, and equipment (net) Liabilities and Stockholders' Equity Accounts payable (trade) Income taxes payable (current) Long-term debt. Common stock Retained earnings $ 32,000 ? ? 310,000 $442,000 $ $ a. Accounts payable b. Retained earnings C Inventory ? 32,000 ? 316,000 Additional Information Current ratio (at year end) Total liabilities + Total stockholders' equity Gross margin percentage ? Inventory turnover (Cost of goods sold + Ending inventory) Gross margin for Year 4 1.5 to 1.0 70% 40% 10.5 times $350,000 Required a. Compute the balance in trade accounts payable as of December 31, Year 4. b. Compute the balance in retained earnings as of December 31, Year 4. c. Compute the balance in the inventory account as of December 31, Year 4. (Assume that the level of inventory did not change from last year.) (For all requirements, negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Transcribed Image Text:Assets Cash FRANKLIN CORPORATION Balance Sheet As of December 31, Year 4 Accounts receivable (net) Inventory Property, plant, and equipment (net) Liabilities and Stockholders' Equity Accounts payable (trade) Income taxes payable (current) Long-term debt. Common stock Retained earnings $ 32,000 ? ? 310,000 $442,000 $ $ a. Accounts payable b. Retained earnings C Inventory ? 32,000 ? 316,000 Additional Information Current ratio (at year end) Total liabilities + Total stockholders' equity Gross margin percentage ? Inventory turnover (Cost of goods sold + Ending inventory) Gross margin for Year 4 1.5 to 1.0 70% 40% 10.5 times $350,000 Required a. Compute the balance in trade accounts payable as of December 31, Year 4. b. Compute the balance in retained earnings as of December 31, Year 4. c. Compute the balance in the inventory account as of December 31, Year 4. (Assume that the level of inventory did not change from last year.) (For all requirements, negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
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