LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 Gross sales $ 21,200 $ 16,650 Sales returns and allowances 800 100 Net sales $ 20,400 $ 16,550 Cost of merchandise (goods) sold 11,450 8,400 Gross profit $ 8,950 $ 8,150 Operating expenses: Depreciation $ 920 $ 710 Selling and administrative 3,850 3,100 Research 770 610 Miscellaneous 580 410 Total operating expenses $ 6,120 $ 4,830 Income before interest and taxes $ 2,830 $ 3,320 Interest expense 780 610 Income before taxes $ 2,050 $ 2,710 Provision for taxes 820 1,084 Net income $ 1,230 $ 1,626 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 Assets Current assets: Cash $ 13,100 $ 10,100 Accounts receivable 17,600 13,600 Merchandise inventory 9,600 15,100 Prepaid expenses 25,100 11,100 Total current assets $ 65,400 $ 49,900 Plant and equipment: Building (net) $ 15,600 $ 12,100 Land 14,600 10,100 Total plant and equipment $ 30,200 $ 22,200 Total assets $ 95,600 $ 72,100 Liabilities Current liabilities: Accounts payable $ 14,100 $ 8,100 Salaries payable 8,100 6,100 Total current liabilities $ 22,200 $ 14,200 Long-term liabilities: Mortgage note payable 23,100 21,600 Total liabilities $ 45,300 $ 35,800 Stockholders’ Equity Common stock $ 22,100 $ 22,200 Retained earnings 28,200 14,100 Total stockholders’ equity $ 50,300 $ 36,300 Total liabilities and stockholders’ equity $ 95,600 $ 72,100 Calculate the average day’s collection. (Use 360 days a year. Do not round intermediate calculations. Round your answers to the nearest hundredth.) 2018 2017 Average day’s collection

LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 Gross sales $ 21,200 $ 16,650 Sales returns and allowances 800 100 Net sales $ 20,400 $ 16,550 Cost of merchandise (goods) sold 11,450 8,400 Gross profit $ 8,950 $ 8,150 Operating expenses: Depreciation $ 920 $ 710 Selling and administrative 3,850 3,100 Research 770 610 Miscellaneous 580 410 Total operating expenses $ 6,120 $ 4,830 Income before interest and taxes $ 2,830 $ 3,320 Interest expense 780 610 Income before taxes $ 2,050 $ 2,710 Provision for taxes 820 1,084 Net income $ 1,230 $ 1,626 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 Assets Current assets: Cash $ 13,100 $ 10,100 Accounts receivable 17,600 13,600 Merchandise inventory 9,600 15,100 Prepaid expenses 25,100 11,100 Total current assets $ 65,400 $ 49,900 Plant and equipment: Building (net) $ 15,600 $ 12,100 Land 14,600 10,100 Total plant and equipment $ 30,200 $ 22,200 Total assets $ 95,600 $ 72,100 Liabilities Current liabilities: Accounts payable $ 14,100 $ 8,100 Salaries payable 8,100 6,100 Total current liabilities $ 22,200 $ 14,200 Long-term liabilities: Mortgage note payable 23,100 21,600 Total liabilities $ 45,300 $ 35,800 Stockholders’ Equity Common stock $ 22,100 $ 22,200 Retained earnings 28,200 14,100 Total stockholders’ equity $ 50,300 $ 36,300 Total liabilities and stockholders’ equity $ 95,600 $ 72,100 Calculate the average day’s collection. (Use 360 days a year. Do not round intermediate calculations. Round your answers to the nearest hundredth.) 2018 2017 Average day’s collection

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	$	21,200	$	16,650
Sales returns and allowances		800		100
Net sales	$	20,400	$	16,550
Cost of merchandise (goods) sold		11,450		8,400
Gross profit	$	8,950	$	8,150
Operating expenses:
Depreciation	$	920	$	710
Selling and administrative		3,850		3,100
Research		770		610
Miscellaneous		580		410
Total operating expenses	$	6,120	$	4,830
Income before interest and taxes	$	2,830	$	3,320
Interest expense		780		610
Income before taxes	$	2,050	$	2,710
Provision for taxes		820		1,084
Net income	$	1,230	$	1,626

LOGIC COMPANY
Comparative Balance Sheet
December 31, 2017 and 2018

	2018	2017
Assets
Current assets:
Cash	$	13,100	$	10,100
Accounts receivable		17,600		13,600
Merchandise inventory		9,600		15,100
Prepaid expenses		25,100		11,100
Total current assets	$	65,400	$	49,900
Plant and equipment:
Building (net)	$	15,600	$	12,100
Land		14,600		10,100
Total plant and equipment	$	30,200	$	22,200
Total assets	$	95,600	$	72,100
Liabilities
Current liabilities:
Accounts payable	$	14,100	$	8,100
Salaries payable		8,100		6,100
Total current liabilities	$	22,200	$	14,200
Long-term liabilities:
Mortgage note payable		23,100		21,600
Total liabilities	$	45,300	$	35,800
Stockholders’ Equity
Common stock	$	22,100	$	22,200
Retained earnings		28,200		14,100
Total stockholders’ equity	$	50,300	$	36,300
Total liabilities and stockholders’ equity	$	95,600	$	72,100

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

	2018	2017
Average day’s collection

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