The December 31, Year 4, balance sheet for Baird Corporation is presented here. These are the only accounts on Baird’s balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information:   BAIRD CORPORATION Balance Sheet As of December 31, Year 4 Assets       Cash $ 20,000   Accounts receivable (net)   ?   Inventory   ?   Property, plant, and equipment (net)   295,000     $ 442,000   Liabilities and Stockholders’ Equity       Accounts payable (trade) $ ?   Income taxes payable (current)   20,000   Long-term debt   ?   Common stock   301,000   Retained earnings   ?     $ ?       Additional Information       Current ratio (at year end) 1.5 to 1.0 Total liabilities ÷ Total stockholders’ equity   70 % Gross margin percentage   20 % Inventory turnover (Cost of goods sold ÷ Ending inventory)   12.5 times Gross margin for Year 4 $ 318,000       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.)

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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The December 31, Year 4, balance sheet for Baird Corporation is presented here. These are the only accounts on Baird’s balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information:
 

BAIRD CORPORATION
Balance Sheet As of December 31, Year 4
Assets      
Cash $ 20,000  
Accounts receivable (net)   ?  
Inventory   ?  
Property, plant, and equipment (net)   295,000  
  $ 442,000  
Liabilities and Stockholders’ Equity      
Accounts payable (trade) $ ?  
Income taxes payable (current)   20,000  
Long-term debt   ?  
Common stock   301,000  
Retained earnings   ?  
  $ ?  
 

 

Additional Information      
Current ratio (at year end) 1.5 to 1.0
Total liabilities ÷ Total stockholders’ equity   70 %
Gross margin percentage   20 %
Inventory turnover (Cost of goods sold ÷ Ending inventory)   12.5 times
Gross margin for Year 4 $ 318,000  
 

 
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.)

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A stockholder is a corporation shareholder or a person who owns at least one share of an organization's capital stock. Stockholders are the majority of the company's owners, and they often obtain the company's success in the form of increasing stock worth.

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