Based on the information in the table, and using a 365-day year, calculate the operating cycle. Balance Sheet December 31, 2012: Cash and securities Accounts receivable Inventories marketable $198,000 Accounts payable $288,000 $469,000 Notes payable $65,000 $577,000 Accrued expenses $84,000 Prepaid expenses $15,700 Total current liabilities $437,000 Total current assets $1,259,700 Long-term debt $237,000 Gross fixed assets $1,954,000 Par value and paid-in-capital $199,000 Less: accumulated $476,000 Retained Earnings $1,864,700 depreciation Net fixed assets $1,478,000 Common Equity $2,063,700 Total liabilities and owner's Total assets $2,737,700 $2,737,700 equity Income Statement, Year of 2012: Net sales (all credit) Less: Cost of goods sold $7,546,600.00 $6,112,746.00 Selling and administrative expenses $349,000.00 Depreciation expense $145,000.00 EBIT $939,854.00 Interest expense $49,500.00 Earnings before taxes $890,354.00 Income taxes $356,141.60 Net income $534,212.40
Based on the information in the table, and using a 365-day year, calculate the operating cycle. Balance Sheet December 31, 2012: Cash and securities Accounts receivable Inventories marketable $198,000 Accounts payable $288,000 $469,000 Notes payable $65,000 $577,000 Accrued expenses $84,000 Prepaid expenses $15,700 Total current liabilities $437,000 Total current assets $1,259,700 Long-term debt $237,000 Gross fixed assets $1,954,000 Par value and paid-in-capital $199,000 Less: accumulated $476,000 Retained Earnings $1,864,700 depreciation Net fixed assets $1,478,000 Common Equity $2,063,700 Total liabilities and owner's Total assets $2,737,700 $2,737,700 equity Income Statement, Year of 2012: Net sales (all credit) Less: Cost of goods sold $7,546,600.00 $6,112,746.00 Selling and administrative expenses $349,000.00 Depreciation expense $145,000.00 EBIT $939,854.00 Interest expense $49,500.00 Earnings before taxes $890,354.00 Income taxes $356,141.60 Net income $534,212.40
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter8: Revenue Recognition, Receivables, And Advances From Customers
Section: Chapter Questions
Problem 42P
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Transcribed Image Text:Based on the information in the table, and using a 365-day year, calculate the operating cycle.
Balance Sheet December 31, 2012:
Cash
and
securities
Accounts receivable
Inventories
marketable
$198,000 Accounts payable
$288,000
$469,000
Notes payable
$65,000
$577,000
Accrued expenses
$84,000
Prepaid expenses
$15,700 Total current liabilities
$437,000
Total current assets
$1,259,700 Long-term debt
$237,000
Gross fixed assets
$1,954,000 Par value and paid-in-capital
$199,000
Less:
accumulated
$476,000 Retained Earnings
$1,864,700
depreciation
Net fixed assets
$1,478,000 Common Equity
$2,063,700
Total liabilities and owner's
Total assets
$2,737,700
$2,737,700
equity
Income Statement, Year of 2012:
Net sales (all credit)
Less: Cost of goods sold
$7,546,600.00
$6,112,746.00
Selling and administrative expenses $349,000.00
Depreciation expense
$145,000.00
EBIT
$939,854.00
Interest expense
$49,500.00
Earnings before taxes
$890,354.00
Income taxes
$356,141.60
Net income
$534,212.40
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