tbook Problems Problem: Module 4 Textbook Problem 6 Learning Objectives: 4-2 Calculate ratios for assessing a company's liquidity 4-3 Calculate ratios for assessing a company's solvency Assets Cash JORDAN CORPORATION Balance Sheet As of December 31, Year 4 The December 31, Year 4, balance sheet for Jordan Corporation is presented here. These are the only accounts on Jordan's balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information: Accounts receivable (net)) Inventory Property, plant, and equipment (net) Liabilities and Stockholders' Equity Accounts payable (trade) Income taxes payable (current) Long-tere debt Common stock Retained earnings Saved $ 40,000 306,000 $444,000 5 7 40,000 ? 312,000 S Help Save & Exit Suba Check my wor
tbook Problems Problem: Module 4 Textbook Problem 6 Learning Objectives: 4-2 Calculate ratios for assessing a company's liquidity 4-3 Calculate ratios for assessing a company's solvency Assets Cash JORDAN CORPORATION Balance Sheet As of December 31, Year 4 The December 31, Year 4, balance sheet for Jordan Corporation is presented here. These are the only accounts on Jordan's balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information: Accounts receivable (net)) Inventory Property, plant, and equipment (net) Liabilities and Stockholders' Equity Accounts payable (trade) Income taxes payable (current) Long-tere debt Common stock Retained earnings Saved $ 40,000 306,000 $444,000 5 7 40,000 ? 312,000 S Help Save & Exit Suba Check my wor
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Rakesh

Transcribed Image Text:extbook Problems
Problem: Module 4 Textbook Problem 6
Learning Objectives:
. 4-2 Calculate ratios for assessing a company's liquidity
. 4-3 Calculate ratios for assessing a company's solvency
Assets
Cash
JORDAN CORPORATION
Balance Sheet As of December 31, Year 4
Accounts receivable (net)
Inventory.
Property, plant, and equipment (net)
The December 31, Year 4, balance sheet for Jordan Corporation is presented here. These are the only accounts on Jordan's balance
sheet Amounts indicated by question marks (?) can be calculated using the following additional information:
Liabilities and Stockholders' Equity
Accounts payable (trade)
Income taxes payable (current)
Long-tere debt
Common stock
Retained earnings:
Saved
$ 40,000
306,000
$444,000
$
40,000
312,000
$
Help
Save & Exit
Subr
Check my work

Transcribed Image Text:Additional Information:
Current ratio (at year end)
Total liabilities
Gross margin percentage
Total stockholders' equity
Inventory turnover (Cost of goods sold + Ending inventory)
Gross margin for Year 4
1.5 to 1.0.
60%
30%
10.4 times
a Accounts payable
b. Retained earnings
Inventory
$390,000
Required
a. Compute the balance in trade accounts payable as of December 31, Year 4.
b. Compute the balance in retained earnings as of December 31, Year 4.
c. Compute the balance in the inventory account as of December 31, Year 4. (Assume that the level of inventory did not change from
last year)
(For all requirements, negative amounts should be indicated by a minus sign. Do not found intermediate calculations. Round your
answers to the nearest whole dollar amount.)
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