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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

FINANCIAL ACCOUNTING
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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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: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
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.)
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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