Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $640 were declared at the end of the year, and 650 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2,600 in cash (for a total at the end of the year of 800 shares). These effects are included below: Catena's Marketing Company Adjusted Trial Balance. End of the Current Year Credit Debit $ 1,620 Cash Accounts receivable 2,340 210 Interest receivable Prepaid insurance 1,700 Long-term notes receivable 2,990 Equipment 15,500 2,860 2,310 640 3,840 Accumulated depreciation Accounts payable Dividends payable Accrued Accrued expenses payable Income taxes payable Unearned rent revenue Common Stock (800 shares) Additional paid-in capital Retained earnings 2,580 490 490 80 00 3,590 3,830 Sales revenue sales revenue 36,950 Interest revenue 170 Rent revenue 730 Wages expense 18,300 Depreciation expense 1,770 Utilities expense 350 710 Insurance expense Rent expense 9,800 2,780 Income tax expense Total $58,070 $ 58,070 a. Compute total assets for Catena's Marketing Company based on the adjusted trial balance. Total assets b. Compute the company's total asset turnover for the current year, assuming total assets at the end of the prior year were $15,700. Total Asset Turnover 1 Choose Denominator: = Total Asset Turnover Choose Numerator: Net income /Ending total assets = Total asset turnover 1 = $
Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $640 were declared at the end of the year, and 650 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2,600 in cash (for a total at the end of the year of 800 shares). These effects are included below: Catena's Marketing Company Adjusted Trial Balance. End of the Current Year Credit Debit $ 1,620 Cash Accounts receivable 2,340 210 Interest receivable Prepaid insurance 1,700 Long-term notes receivable 2,990 Equipment 15,500 2,860 2,310 640 3,840 Accumulated depreciation Accounts payable Dividends payable Accrued Accrued expenses payable Income taxes payable Unearned rent revenue Common Stock (800 shares) Additional paid-in capital Retained earnings 2,580 490 490 80 00 3,590 3,830 Sales revenue sales revenue 36,950 Interest revenue 170 Rent revenue 730 Wages expense 18,300 Depreciation expense 1,770 Utilities expense 350 710 Insurance expense Rent expense 9,800 2,780 Income tax expense Total $58,070 $ 58,070 a. Compute total assets for Catena's Marketing Company based on the adjusted trial balance. Total assets b. Compute the company's total asset turnover for the current year, assuming total assets at the end of the prior year were $15,700. Total Asset Turnover 1 Choose Denominator: = Total Asset Turnover Choose Numerator: Net income /Ending total assets = Total asset turnover 1 = $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $640 were
declared at the end of the year, and 650 additional shares of common stock ($0.10 par value per share) were issued at the end of the
year for $2,600 in cash (for a total at the end of the year of 800 shares). These effects are included below:
Catena's Marketing Company
Adjusted Trial Balance
End of the Current Year
Credit
Cash
Accounts receivable
Interest receivable
Prepaid insurance
Long-term notes receivable
Equipment
$ 2,860
2,310
640
3,840
Accumulated depreciation
Accounts payable
Dividends payable
Accrued
Accrued expenses payable
Income taxes payable
Unearned rent revenue
Common Stock (800 shares)
Additional paid-in capital
2,580
490
490
80
80
3,590
Retained earnings
3,830
Sales revenue
sales revenue
36,950
Interest revenue
170
Rent revenue
730
18,300
Wages expense
Depreciation expense
1,770
Utilities expense
350
710
Insurance expense
Rent expense
9,800
2,780
Income tax expense
Total
$ 58,070 $ 58,070
a. Compute total assets for Catena's Marketing Company based on the adjusted trial balance.
Total assets
b. Compute the company's total asset turnover for the current year, assuming total assets at the end of the prior year were $15,700.
Total Asset Turnover
Choose Denominator:
= Total Asset Turnover
Choose Numerator: /
Net income
=
Total asset turnover
=
Debit
$1,620
2,340
210
1,700
2,990
15,500
/Ending total assets
1
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