GENESIS CORPORATION Balance Sheet December 31, of Current Year Assets Cash $ 10,000 Short-term investments 8,400 Accounts receivable, net 33,700 Merchandise inventory 32,150 Prepaid expenses 2,650 Plant assets, net 153,300 Total assets $240,200 Liabilities and Equity Accounts payable $ 17,500 Accrued wages payable 3,200 Income taxes payable 3,300 Long-term note payable, secured by mortgage on plant assets 63,400 Common stock 90,000 Retained earnings 62,800 Total liabilities and equity $240,200 GENESIS CORPORATION Income Statement December 31, of Current Year Sales $448,600 Cost of goods sold 297,250 Gross profit 151,350 Operating expenses 98,600 Interest expense 4,100 Income before taxes 48,650 Income tax expense 19,598 Net income $ 29,052
GENESIS CORPORATION Balance Sheet December 31, of Current Year Assets Cash $ 10,000 Short-term investments 8,400 Accounts receivable, net 33,700 Merchandise inventory 32,150 Prepaid expenses 2,650 Plant assets, net 153,300 Total assets $240,200 Liabilities and Equity Accounts payable $ 17,500 Accrued wages payable 3,200 Income taxes payable 3,300 Long-term note payable, secured by mortgage on plant assets 63,400 Common stock 90,000 Retained earnings 62,800 Total liabilities and equity $240,200 GENESIS CORPORATION Income Statement December 31, of Current Year Sales $448,600 Cost of goods sold 297,250 Gross profit 151,350 Operating expenses 98,600 Interest expense 4,100 Income before taxes 48,650 Income tax expense 19,598 Net income $ 29,052
Chapter12: Capital Structure
Section: Chapter Questions
Problem 1PROB
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Question
Selected current year-end financial statements of Concordia Corporation follow. All sales were on credit; selected
compute the following: times interest earned, days’ sales in inventory, debt-to-equity ratio
![GENESIS CORPORATION
Balance Sheet
December 31, of Current Year
Assets
Cash
$ 10,000
Short-term investments
8,400
Accounts receivable, net
33,700
Merchandise inventory
32,150
Prepaid expenses
2,650
Plant assets, net
153,300
Total assets
$240,200
Liabilities and Equity
Accounts payable
$ 17,500
Accrued wages payable
3,200
Income taxes payable
3,300
Long-term note payable, secured by mortgage on plant assets
63,400
Common stock
90,000
Retained earnings
62,800
Total liabilities and equity
$240,200
GENESIS CORPORATION
Income Statement
December 31, of Current Year
Sales
$448,600
Cost of goods sold
297,250
Gross profit
151,350
Operating expenses
98,600
Interest expense
4,100
Income before taxes
48,650
Income tax expense
19,598
Net income
$ 29,052](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc8a42468-cd0e-471d-a5d7-133e4340b4f2%2F508721a0-f7ad-4ed8-9960-93e126236952%2Fpbqab3_processed.png&w=3840&q=75)
Transcribed Image Text:GENESIS CORPORATION
Balance Sheet
December 31, of Current Year
Assets
Cash
$ 10,000
Short-term investments
8,400
Accounts receivable, net
33,700
Merchandise inventory
32,150
Prepaid expenses
2,650
Plant assets, net
153,300
Total assets
$240,200
Liabilities and Equity
Accounts payable
$ 17,500
Accrued wages payable
3,200
Income taxes payable
3,300
Long-term note payable, secured by mortgage on plant assets
63,400
Common stock
90,000
Retained earnings
62,800
Total liabilities and equity
$240,200
GENESIS CORPORATION
Income Statement
December 31, of Current Year
Sales
$448,600
Cost of goods sold
297,250
Gross profit
151,350
Operating expenses
98,600
Interest expense
4,100
Income before taxes
48,650
Income tax expense
19,598
Net income
$ 29,052
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