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 + Total stockholders' equity. Gross margin percentage $ 35,000 ? 292,000 $442,000 ? 35,000 ? 298,000 a. Accounts payable b. Retained earnings c. Inventory $ $ ? ? Inventory turnover (Cost of goods sold + Ending inventory) Gross margin for Year 4. 1.6 to 1.0 70% 40% 9.6 times $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.) (For all requirements, negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
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 + Total stockholders' equity. Gross margin percentage $ 35,000 ? 292,000 $442,000 ? 35,000 ? 298,000 a. Accounts payable b. Retained earnings c. Inventory $ $ ? ? Inventory turnover (Cost of goods sold + Ending inventory) Gross margin for Year 4. 1.6 to 1.0 70% 40% 9.6 times $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.) (For all requirements, negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 + Total stockholders' equity
Gross margin percentage
$35,000
a. Accounts payable
b. Retained earnings
Inventory
C.
292,000
$442,000
$
?
P
$
P
35,000
298,000
Inventory turnover (Cost of goods sold + Ending inventory)
Gross margin for Year 4
12
1.6 to 1.0
70%
40%
9.6 times
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.)
$340,000
(For all requirements, negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your
answers to the nearest whole dollar amount.)
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