8 The December 31, Year 4, balance sheet for Finch Corporation is presented here.These are the only accounts on Finch's balance sheet. Amounts indicated by questionmarks (?) can be calculated using the following additional information:AssetsCashFINCH CORPORATIONBalance Sheet As of December 31, Year 4Accounts receivable (net)InventoryProperty, plant, and equipment (net)Liabilities and Stockholders' EquityAccounts payable (trade)Income taxes payable (current)Long-term debtCommon stockRetained earnings$ 35,000??292,000$442,000Additional InformationCurrent ratio (at year end)Total liabilities ÷ Total stockholders' equityGross margin percentagea. Accounts payableb. Retained earningsInventoryC.298,000$?35,000?Inventory turnover (Cost of goods sold ÷ Ending inventory)Gross margin for Year 4??1.6 to 1.070%40%9.6 tilRequireda. 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. (Assumethat the level of inventory did not change from last year.)$340,000(For all requirements, negative amounts should be indicated by a minus sign. Donot round intermediate calculations. Round your answers to the nearest wholedollar amount.)

The balance sheet is created to indicate a company's financial situation at a given point in time by…

The December 31, Year 4, balance sheet for Finch Corporation is presented here. These are the only accounts on Finch's balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information: Assets Cash FINCH CORPORATION Balance Sheet As of December 31, Year 4 Accounts receivable (net) Inventory Property, plant, and equipment (net) Liabilities and Stockholders' Equity Accounts payable (trade) Income taxes payable (current) Long-term debt Common stock Retained earnings Additional Information Current ratio (at year end) Total liabilities Gross margin percentage $ 35,000 ? ? 292,000 $442,000 $ 298,000 $ ? 35,000 ? Total stockholders' equity ? ? Inventory turnover (Cost of goods sold Ending inventory) Gross margin for Year 4 1.6 to 1.0 70% 40% 9.6 til $340,000 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.)

The December 31, Year 4, balance sheet for Finch Corporation is presented here. These are the only accounts on Finch's balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information: Assets Cash FINCH CORPORATION Balance Sheet As of December 31, Year 4 Accounts receivable (net) Inventory Property, plant, and equipment (net) Liabilities and Stockholders' Equity Accounts payable (trade) Income taxes payable (current) Long-term debt Common stock Retained earnings Additional Information Current ratio (at year end) Total liabilities Gross margin percentage $ 35,000 ? ? 292,000 $442,000 $ 298,000 $ ? 35,000 ? Total stockholders' equity ? ? Inventory turnover (Cost of goods sold Ending inventory) Gross margin for Year 4 1.6 to 1.0 70% 40% 9.6 til $340,000 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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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