Note 1: Compute net income for 2020 Sales Cost of goods sold Gross profit Operating expenses Income before taxes Taxes expense Net income Required Calculate: Cash Ratio Quick Currant Ratio Current ratio $920,000 690.000 $230,000 180,000 $ 50,000 20.000 $.30,000 Note 2: Compute Stockholders' Equity Common stock ($7.5 par x 20,000 sh) $150,000 Additional paid-in capital ($10.5-$7.5) x 20,000 sh. Retained earnings, Dec 31, Year 4 Net income Retained earnings, Dec. 31, Year 5 Total 60.000 98,000 30.000 $210,000 128.000 $338.000
Note 1: Compute net income for 2020 Sales Cost of goods sold Gross profit Operating expenses Income before taxes Taxes expense Net income Required Calculate: Cash Ratio Quick Currant Ratio Current ratio $920,000 690.000 $230,000 180,000 $ 50,000 20.000 $.30,000 Note 2: Compute Stockholders' Equity Common stock ($7.5 par x 20,000 sh) $150,000 Additional paid-in capital ($10.5-$7.5) x 20,000 sh. Retained earnings, Dec 31, Year 4 Net income Retained earnings, Dec. 31, Year 5 Total 60.000 98,000 30.000 $210,000 128.000 $338.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
s
Transcribed Image Text:Current Assets
Cash
Accounts receivable
Inventories
Total current assets
Non-current assets
Total assets
Supporting computations:
Cost of goods sold
Gross profit
Operating expenses
Income before taxes
Taxes expense
Net income
Required Calculate:
Note 1: Compute net income for 2020
Sales
Cash Ratio
Quick Currant Ratio
Current ratio
Working capital
Total debts to total assets
Assen
Book value
Market value
$ 10,250
46,000
86.250
December 31, 2020
$143,000
280.500
$423.500
$920,000
690.000
$230,000
180.000
$ 50,000
20.000
$.30,000
Liabilities and Stockholders' Equity
Current liabilities
Non-current liabilities
Total liabilities
Stockholders' Equity
Common stock
Additional paid-in capital
Retained earnings
Total stockholders' equity
Total liabilities and equity
$23,000
62,000
Retained earnings, Dec. 31, Year 5
$150,000
60,000
128.000
Note 2: Compute Stockholders' Equity
Common stock ($7.5 par x 20,000 sh.)
Additional paid-in capital ($10.5-$7.5) x
20,000 sh.
Retained earnings, Dec 31, Year 4
Net income
Total
$ 85,000
$338.000
$423.500
$150,000
60.000 $210,000
98,000
30,000
128.000
$338.000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education