LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 20182017 Gross sales$21,600 $16,950 Sales returns and allowances 900 100 Net sales$20,700 $16,850 Cost of merchandise (goods) sold 11,350 8,300 Gross profit$9,350 $8,550 Operating expenses: Depreciation$960 $730 Selling and administrative 4,150 3,300 Research 810 630 Miscellaneous 620 430 Total operating expenses$6,540 $5,090 Income before interest and taxes$2,810 $3,460 Interest expense 820 630 Income before taxes$1,990 $2,830 Provision for taxes 796 1,132 Net income$1,194 $1,698 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 20182017 Assets Current assets: Cash$13,300 $10,300 Accounts receivable 17,800 13,800 Merchandise inventory 9,800 15,300 Prepaid expenses 25,300 11,300 Total current assets$66,200 $50,700 Plant and equipment: Building (net)$15,800 $12,300 Land 14,800 10,300 Total plant and equipment$30,600 $22,600 Total assets$96,800 $73,300 Liabilities Current liabilities: Accounts payable$14,300 $8,200 Salaries payable 8,200 6,300 Total current liabilities$22,500 $14,500 Long-term liabilities: Mortgage note payable 23,300 21,800 Total liabilities$45,800 $36,300 Stockholders’ Equity Common stock$22,300 $22,200 Retained earnings 28,700 14,800 Total stockholders’ equity$51,000 $37,000 Total liabilities and stockholders’ equity$96,800 $73,300 Calculate the average day’s collection. (Use 360 days a year. Do not round intermediate calculations. Round your answers to the nearest hundredth.)(FOR 2018 AND 2017)

Accounts receivable is the amount that has been earned by the company but the payment for the same…

Answered: LOGIC COMPANY Comparative Income…

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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LOGIC COMPANY
Comparative Income Statement
For Years Ended December 31, 2017 and 2018

	2018	2017
Gross sales	$	21,600	$	16,950
Sales returns and allowances		900		100
Net sales	$	20,700	$	16,850
Cost of merchandise (goods) sold		11,350		8,300
Gross profit	$	9,350	$	8,550
Operating expenses:
Depreciation	$	960	$	730
Selling and administrative		4,150		3,300
Research		810		630
Miscellaneous		620		430
Total operating expenses	$	6,540	$	5,090
Income before interest and taxes	$	2,810	$	3,460
Interest expense		820		630
Income before taxes	$	1,990	$	2,830
Provision for taxes		796		1,132
Net income	$	1,194	$	1,698

LOGIC COMPANY
Comparative Balance Sheet
December 31, 2017 and 2018

	2018	2017
Assets
Current assets:
Cash	$	13,300	$	10,300
Accounts receivable		17,800		13,800
Merchandise inventory		9,800		15,300
Prepaid expenses		25,300		11,300
Total current assets	$	66,200	$	50,700
Plant and equipment:
Building (net)	$	15,800	$	12,300
Land		14,800		10,300
Total plant and equipment	$	30,600	$	22,600
Total assets	$	96,800	$	73,300
Liabilities
Current liabilities:
Accounts payable	$	14,300	$	8,200
Salaries payable		8,200		6,300
Total current liabilities	$	22,500	$	14,500
Long-term liabilities:
Mortgage note payable		23,300		21,800
Total liabilities	$	45,800	$	36,300
Stockholders’ Equity
Common stock	$	22,300	$	22,200
Retained earnings		28,700		14,800
Total stockholders’ equity	$	51,000	$	37,000
Total liabilities and stockholders’ equity	$	96,800	$	73,300

Calculate the average day’s collection. (Use 360 days a year. Do not round intermediate calculations. Round your answers to the nearest hundredth.)

(FOR 2018 AND 2017)

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