### Creating a Classified Balance SheetThis template is designed to help organize and present a company's financial position as of January 31, Year 1. A classified balance sheet provides detailed information about a company's assets, liabilities, and stockholders' equity. Below is the structure and explanation of such a balance sheet:#### Assets- **Current Assets**: These are assets that are expected to be converted into cash, sold, or consumed within one year. The format suggests entering asset accounts by order of liquidity.- **Less: Allowance for Uncollectible Accounts**: This is a contra-asset account that represents the estimated amount of accounts receivable that may not be collected. In this template, the value is noted as 0.- **Total Current Assets**: Sum of all current assets after deducting allowances for uncollectible accounts. Here it is shown as 0.- Additional rows for non-current assets, if any, can be added below the current assets.#### Liabilities- **Total Current Liabilities**: These are obligations the company expects to settle within one year, listed in their order of maturity.- **Total Liabilities**: This is the sum of current and any long-term liabilities.#### Stockholders' Equity- Includes the capital provided by investors and cumulative retained earnings.- **Total Stockholders' Equity**: Total of all equity accounts.- The template sets a combined total of liabilities and stockholders' equity in relation to total assets, which ensures the balance sheet accounts are balanced.### Balancing the Sheet- **Total Assets** are expected to equal the sum of **Total Liabilities and Stockholders’ Equity**, ensuring the accounting equation (Assets = Liabilities + Equity) holds true.Remember, amounts to be deducted in the balance sheet should be indicated with a minus sign (-). This sheet should be customized with actual financial data to accurately reflect the fiscal status of a company. [The following information applies to the questions displayed below.]**On January 1, Year 1, the general ledger of a company includes the following account balances:**| Accounts | Debit | Credit ||----------------------------------------|-------------|-------------|| Cash | $25,600 | || Accounts Receivable | 47,200 | || Allowance for Uncollectible Accounts | | $4,700 || Inventory | 20,500 | || Land | 51,000 | || Equipment | 17,500 | || Accumulated Depreciation | | 2,000 || Accounts Payable | | 29,000 || Notes Payable (6%, due April 1, Year 2)| | 55,000 || Common Stock | | 40,000 || Retained Earnings | | 31,100 || **Totals** | **$161,800**| **$161,800**|**During January Year 1, the following transactions occur:**- **January 2:** Sold gift cards totaling $9,000. The cards are redeemable for merchandise within one year of the purchase date.- **January 6:** Purchase additional inventory on account, $152,000.- **January 15:** The company sales for the first half of the month total $140,000. All of these sales are on account. The cost of the units sold is $76,300.- **January 23:** Receive $125,000 from customers on accounts receivable.- **January 25:** Pay $95,000 to inventory suppliers on accounts payable.- **January 28:** Write off accounts receivable as uncollectible, $5,300.- **January 30:** The company sales for the second half of the month total $148,000. Sales include $10,000 for cash and $138,000 on account. The cost of the units sold is $82,000.- **January 31:** Pay cash for monthly salaries, $52,500.

A statement that reports the equities, liabilities and assets of a company is termed as balance…

Answered: On January 1, Year 1, the general…

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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The account balances for KinderMorgan Account Title Balance Accounts Payable $8,990 Accounts Receivable, 1/1/22 4,455 Accumulated Depreciation 21,500 Building 65,000 Cash 10,300 45,000 Common Stock Delivery Truck Depreciation Expense Dividends 9,700 4.210 2,100 Marketable Equity Securities 3,400 Accounts Receivable, 12/31/22 5.250 Determine the Debt to Equity Ratio: 0.1114 0.1694 0.2101 0.1482 O 0.1783 are listed below. All balances are as of December 31, 2022, except where noted: Account Title Balance Inventory, 1/1/22 $2,040 Supplies 7,500 Salaries Expense 11,250 54,005 7,850 Retained Earnings, 1/1/22 23,480 Equipment 15,700 Prepaid Expenses 2,600 Cost of Goods Sold 16,350 Notes Payable (due 2024) 5.400 Inventory, 12/31/22 3,660 Net Revenue Rent Expense
The balance sheet for Gallinas Industries is as follows, Gallinas Industries Balance Sheet December 31 Assets Liabilities and Stockholders' Equity Cash $35,000 Accounts payable $101,920 Marketable securities 101,920 Notes payable 62,720 Accounts receivable 109,760 Accrued wages 62,720 Inventories 148,960 Total current liabilities $227,360 Total current assets $395,640 Long-term debt $203,840 Land and buildings (net) $145,635 Preferred stock $94,080 Machinery and equipment 242,725 Common stock (10,000 shares) 141,120 Total fixed assets (net) $388,360 Retained earnings 117,600 Total assets $784,000 Total liabilities and stockholders' equity $784,000 Additional information with respect to the firm is available: 1. Preferred stock can be liquidated at book value. 2. Accounts receivable and inventories can be liquidated at 85%of book value. 3. The firm…
Ratio Analysis Presented below are summary financial data from Pompeo's annual report: Amounts in millions Balance sheet Cash and cash equivalents $6,328 Marketable securities 63,298 Accounts receivable (net) 32,785 Total current assets 136,808 Total assets 430,773 Current liabilities 113,172 Long-term debt 21,837 Shareholders' equity 204,834 Income Statement Interest expense 1,257 Net income before taxes 42,021 Calculate the following ratios: (round to two decimal places) a. Times-interest-earned ratio b. Quick ratio
Required Information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 29,387 58,429 $ 29,125 40,023 66,638 $ 23,920 69,328 88,056 7,860 224,536 $ 413,700 7,564 282,628 $ 356,638 81,206 162,500 54,468 $101,981 76,998 $ 58,464 162,500 72,221 $ 413,780 $ 356,638 For both the current year and one year ago, compute the following ratios: 43,855 3,236 184,761 $ 300,200 $ 38,438 64,354 162,580 34,988 $ 300,200 Exercise 17-6 (Algo) Common-size percents LO P2 1. Express the balance sheets in common-size percents. 2. Assuming annual sales have not changed in the last three…
Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable. Common stock, $10 par value Retained earnings Total liabilities and equity Current Year $ 30,800 88,100 111,000 10,900 280,000 $ 520,800 $ 128,400 98,000 163,500 130,900 $ 520,800 Current Year 1 Year Ago $ 35,000 61,500 82,400 9,300 250,500 $ 438,700 $ 478,850 243,350 12,100 9,550 $73,750 101,750 163,500 99,700 $438,700 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses $785,000 Interest expense Income tax expense Total costs and expenses Net income Earnings per share For both the Current Year and 1 Year Ago, compute the following ratios: 743,850 $ 41,150 $ 2.52 2…
A firm has : cash balance $23,015.00 accounts payable $163,257.00 common stock $313,299.00 retained earnings $512,159.00 inventory $212,444.00 goodwill & other assets $78,656.00 plant & equipment $711,256.00 short-term notes payable $21,115.00 accounts receivable $141,258.00 current assets $11,223.00 what is long term debt?
Liberty Corporation reported the following financial statements: The company has 2,500 shares of common stock outstanding and the market price is $20 per share. What is Liberty’s price/earnings ratio? a. 0.08 b. $0.08 c. 12.35 12.35 times
1
The balance sheet of RS Corp. as at December 31, 1979 contained the following current assets: Cash 96, 578 Accounts receivable 452,800 Inventories 376,300 925,678 An examination of the accounts disclosed that the accounts receivable consisted of the following items: Trade customers’ accounts 357,742 Due from employees – current 43,658 Equity in 50,000 of uncollected accounts receivable assigned under guaranty 16,000 Selling price of merchandise on consignment at 140% of cost and not sold 50,400 Allowance for doubtful accounts…
The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: Beginning balances: Inventory $200,000 Accounts receivable 300,000 Ending balances: Inventory 250,000 Accounts receivable 400,000 Cash 100,000 Marketable securities (short-term) 200,000 Prepaid expenses 50,000 Accounts payable 175,000 Taxes payable 85,000 Wages payable 90,000 Short-term loans payable 50,000 During the year, Arnn had net sales of $2.45 million. The cost of goods sold was $1.3 million. Required: When required, round your answers to two decimal places. Assume 365 days per year. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. times 4. Compute the accounts receivable turnover in days. days 5. Compute the inventory turnover ratio. times 6. Compute the inventory turnover in days. days
Selected financial data for Wilmington Corporation is presented below. WILMINGTON CORPORATION Balance Sheet As of December 31 Year 7 Year 6 Current Assets Cash and cash equivalents $ 634,527 $ 335,597 Marketable securities 166,106 187,064 Accounts receivable (net) 284,226 318,010 Inventories 466,942 430,249 Prepaid expenses 60,906 28,060 Other current assets 83,053 85,029 Total Current Assets 1,695,760 1,384,009 Property, plant and equipment 1,384,217 625,421 Long-term investment 568,003 425,000 Total Assets $3,647,980 $2,434,430 Current Liabilities Short-term borrowings $ 306,376 $ 170,419 Current portion of long-term debt 155,000 168,000 Accounts payable 279,522 314,883 Accrued liabilities 301,024 183,681 Income taxes payable 107,509 196,802 Total Current Liabilities 1,149,431…

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