Complete the Balance Sheet for O’Keefe Industries using the information that follows it. O'Kefe Industries Balance Sheet December 31, 2012AssetsLiabilities and Stockholders' EquityCashAccounts payableNotes payable$32,720$120,000Marketable securities25,000Accounts receivableAccruals20,000InventoriesTotal current liabilitiesLong-term debtStockholders' equityTotal liabilities and stockholders' equity $Total current assetsNet fixed assets$600,000Total assetsThe following financial data for 2012 are also available:1. Sales totaled $1,800,000.2. The gross profit margin was 25%.3. Inventory turnover was 6.0.4. There are 365 days in the year.5. The average collection period was 40 days.6. The current ratio was 1.60.7. The total asset turnover ratio was 1.20.8. The debt ratio was 60%.

1. Average collection period = No. of working days * (Accounts receivable ÷ Sales) 40 = 360 *…

Answered: Complete the Balance Sheet for O’Keefe…

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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Complete the Balance Sheet for O’Keefe Industries using the information that follows it.

O'Kefe Industries Balance Sheet December 31, 2012
Assets
Liabilities and Stockholders' Equity
Cash
Accounts payable
Notes payable
$32,720
$120,000
Marketable securities
25,000
Accounts receivable
Accruals
20,000
Inventories
Total current liabilities
Long-term debt
Stockholders' equity
Total liabilities and stockholders' equity $
Total current assets
Net fixed assets
$600,000
Total assets
The following financial data for 2012 are also available:
1. Sales totaled $1,800,000.
2. The gross profit margin was 25%.
3. Inventory turnover was 6.0.
4. There are 365 days in the year.
5. The average collection period was 40 days.
6. The current ratio was 1.60.
7. The total asset turnover ratio was 1.20.
8. The debt ratio was 60%.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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