LIBERTY CORPORATION Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Assets Current Assets: Cash and Cash Equivalents $ 2,450 $ 2,094 Accounts Receivable 1,813 1,611 Merchandise Inventory 1,324 1,060 1,709 2,120 Prepaid Expenses 7,296 6,885 Total Current Assets 18,500 15,737 Other Assets $ 25,796 $ 22,622 Total Assets Liabilities $ 7,230 $ 8,467 Current Liabilities 4,798 3,792 Long-term Liabilities Total Liabilities 12,028 12,259 Stockholders' Equity Common Stock, no par 6,568 4,363 Retained Earnings 7,200 6,000 Total Stockholders' Equity 13,768 10,363 Total Liabilities and Stockholders' Equity $ 25,796 $ 22,622 LIBERTY CORPORATION Income Statement Year Ended December 31, 2019 $ 20,941 Net Sales Revenue Cost of Goods Sold 7,055 13,886 Gross Profit 7,065 Operating Expenses 6,821 Operating Income 210 Interest Expense Income Before Income Taxes 6,611 2,563 Income Tax Expense $ 4,048 Net Income

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Liberty Corporation reported the following financial statements:

Liberty’s inventory turnover during 2019 was (amounts rounded)

a. 6 times.

b. 7 times.

c 8 times.

d. not determinable from the data

LIBERTY CORPORATION
Comparative Balance Sheet
December 31, 2019 and 2018
2019
2018
Assets
Current Assets:
Cash and Cash Equivalents
$ 2,450
$ 2,094
Accounts Receivable
1,813
1,611
Merchandise Inventory
1,324
1,060
1,709
2,120
Prepaid Expenses
7,296
6,885
Total Current Assets
18,500
15,737
Other Assets
$ 25,796
$ 22,622
Total Assets
Liabilities
$ 7,230
$ 8,467
Current Liabilities
4,798
3,792
Long-term Liabilities
Total Liabilities
12,028
12,259
Stockholders' Equity
Common Stock, no par
6,568
4,363
Retained Earnings
7,200
6,000
Total Stockholders' Equity
13,768
10,363
Total Liabilities and Stockholders' Equity
$ 25,796
$ 22,622
LIBERTY CORPORATION
Income Statement
Year Ended December 31, 2019
$ 20,941
Net Sales Revenue
Cost of Goods Sold
7,055
13,886
Gross Profit
7,065
Operating Expenses
6,821
Operating Income
210
Interest Expense
Income Before Income Taxes
6,611
2,563
Income Tax Expense
$ 4,048
Net Income
Transcribed Image Text:LIBERTY CORPORATION Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Assets Current Assets: Cash and Cash Equivalents $ 2,450 $ 2,094 Accounts Receivable 1,813 1,611 Merchandise Inventory 1,324 1,060 1,709 2,120 Prepaid Expenses 7,296 6,885 Total Current Assets 18,500 15,737 Other Assets $ 25,796 $ 22,622 Total Assets Liabilities $ 7,230 $ 8,467 Current Liabilities 4,798 3,792 Long-term Liabilities Total Liabilities 12,028 12,259 Stockholders' Equity Common Stock, no par 6,568 4,363 Retained Earnings 7,200 6,000 Total Stockholders' Equity 13,768 10,363 Total Liabilities and Stockholders' Equity $ 25,796 $ 22,622 LIBERTY CORPORATION Income Statement Year Ended December 31, 2019 $ 20,941 Net Sales Revenue Cost of Goods Sold 7,055 13,886 Gross Profit 7,065 Operating Expenses 6,821 Operating Income 210 Interest Expense Income Before Income Taxes 6,611 2,563 Income Tax Expense $ 4,048 Net Income
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