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Doors Inc.’s condensed income statement and balance sheet for the years 2022 and 2021 follow. Accounts Receivable increased 50 percent from 2021 to 2022. There were no new purchases of land, property, or equipment in 2022. Accounts Payable decreased 40 percent from 2021 to 2022. No new shares of common stock were issued in 2022. The company paid out cash dividends of $85,670 in 2022. The inventory turnover ratio for 2022 was 6 times. The asset turnover ratio in 2022 was 2.5 times and in 2021 was 2.9 times. The earnings per share in 2022 was $68.21 and in 2021 was $75.18. The effective income tax rate in both years was 20 percent.

Doors Inc.’s condensed income statement and balance sheet for the years 2022 and 2021 follow. Accounts Receivable increased 50 percent from 2021 to 2022. There were no new purchases of land, property, or equipment in 2022. Accounts Payable decreased 40 percent from 2021 to 2022. No new shares of common stock were issued in 2022. The company paid out cash dividends of $85,670 in 2022. The inventory turnover ratio for 2022 was 6 times. The asset turnover ratio in 2022 was 2.5 times and in 2021 was 2.9 times. The earnings per share in 2022 was $68.21 and in 2021 was $75.18. The effective income tax rate in both years was 20 percent.

FINANCIAL ACCOUNTING
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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Doors Inc.’s condensed income statement and balance sheet for the years 2022 and 2021 follow.

 

  1. Accounts Receivable increased 50 percent from 2021 to 2022.
  2. There were no new purchases of land, property, or equipment in 2022.
  3. Accounts Payable decreased 40 percent from 2021 to 2022.
  4. No new shares of common stock were issued in 2022.
  5. The company paid out cash dividends of $85,670 in 2022.
  6. The inventory turnover ratio for 2022 was 6 times.
  7. The asset turnover ratio in 2022 was 2.5 times and in 2021 was 2.9 times.
  8. The earnings per share in 2022 was $68.21 and in 2021 was $75.18.
  9. The effective income tax rate in both years was 20 percent.

 

 

Stockholders' Equity Common Stock ($1 par, 10,000 Shares Authorized) $ 2,000 Paid in Capital in Excess Of Par-Common Stock 500 Retained Earnings 92,700 Total Stockholders' Equity Total Liabilities and Stockholders' Equity
Transcribed Image Text:Stockholders' Equity Common Stock ($1 par, 10,000 Shares Authorized) $ 2,000 Paid in Capital in Excess Of Par-Common Stock 500 Retained Earnings 92,700 Total Stockholders' Equity Total Liabilities and Stockholders' Equity
DOORS, INC. Comparative Balance Sheet December 31, 2022 and 2021 Amounts 2022 2021 Assets Current Assets Cash 53,500 $ 36,900 Accounts Receivable 22,900 Merchandise Inventory 26,000 19,000 Total Current Assets 78,800 Property, Plant, and Equipment Land $ 18,800 Equipment 48,000 Less: Accumulated Depreciation (9,200) Total Property, Plant, and Equipment 61,800 Total Assets $ 140,600 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable $ 17,400 Accrued Expenses Total Current Liabilities 25,500 $ 45,400 Stockholders' Equity Common Stock ($1 par, 10,000 Shares Authorized) 2,000 Paid in Capital in Excess Of Par-Common Stock 500 Retained Earnings 92,700 %24 %24 %24 %24 %24 %24
Transcribed Image Text:DOORS, INC. Comparative Balance Sheet December 31, 2022 and 2021 Amounts 2022 2021 Assets Current Assets Cash 53,500 $ 36,900 Accounts Receivable 22,900 Merchandise Inventory 26,000 19,000 Total Current Assets 78,800 Property, Plant, and Equipment Land $ 18,800 Equipment 48,000 Less: Accumulated Depreciation (9,200) Total Property, Plant, and Equipment 61,800 Total Assets $ 140,600 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable $ 17,400 Accrued Expenses Total Current Liabilities 25,500 $ 45,400 Stockholders' Equity Common Stock ($1 par, 10,000 Shares Authorized) 2,000 Paid in Capital in Excess Of Par-Common Stock 500 Retained Earnings 92,700 %24 %24 %24 %24 %24 %24
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