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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Vipul b

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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