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 Debit $ 1,620 Credit Cash Accounts receivable 2,340 210 Interest receivable Prepaid insurance Long-term notes receivable Equipment Accumulated depreciation Accounts payable Dividends payable 1,700 2,990 15,500 $ 2,860 2,310 640 3,840 2,580 Accrued expenses payable Income taxes payable Unearned rent revenue 490 Common Stock (800 shares) Additional paid-in capital 80 3,590 Retained Aetaihed earnings Sales sazes revenue Interest revenue 3,830 36,950 170 730 Rent revenue Wages expense Depreciation expense Utilities expense 18,300 1,770 350 710 Insurance expense Rent expense Income tax expense 9,800 2,780 $ 58,070 $ 58,070 Total 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 Numerator:I Choose Denominator: = Total Asset Turnover Net income I Ending total assets Total asset turnover
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 Debit $ 1,620 Credit Cash Accounts receivable 2,340 210 Interest receivable Prepaid insurance Long-term notes receivable Equipment Accumulated depreciation Accounts payable Dividends payable 1,700 2,990 15,500 $ 2,860 2,310 640 3,840 2,580 Accrued expenses payable Income taxes payable Unearned rent revenue 490 Common Stock (800 shares) Additional paid-in capital 80 3,590 Retained Aetaihed earnings Sales sazes revenue Interest revenue 3,830 36,950 170 730 Rent revenue Wages expense Depreciation expense Utilities expense 18,300 1,770 350 710 Insurance expense Rent expense Income tax expense 9,800 2,780 $ 58,070 $ 58,070 Total 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 Numerator:I Choose Denominator: = Total Asset Turnover Net income I Ending total assets Total asset turnover
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
Debit
Credit
$ 1,620
Cash
Accounts receivable
2,340
Interest receivable
Prepaid insurance
Long-term notes receivable
Equipment
Accumulated depreciation
Accounts payable
Dividends payable
210
1,700
2,990
15,500
$ 2,860
2,310
640
Accrued expenses payable
Income taxes payable
Unearned rent revenue
3,840
2,580
490
Common Stock (800 shares)
Additional paid-in capital
Retained earnings
Sales revenue
80
3,590
3,830
36,950
170
730
Interest revenue
Rent revenue
Wages expense
Depreciation expense
Utilities expense
18,300
1,770
350
Insurance expense
710
Rent expense
Income tax expense
9,800
2,780
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 Numerator: I
Choose Denominator:
Total Asset Turnover
%3D
Net income
I Ending total assets
=| Total asset turnover
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