The statement of financial position of Trend, Inc. is presented below. These are the only accounts in Trend’s statement of financial position. Amounts indicated by question mark (?) can be calculated from the additional information given. Assets: Cash 25,000 Accounts receivable (net) ? Inventory ? Property, plant and equipment (net) 294,000 Total 432,000 Liabilities and Stockholders’ Equity Accounts payable (trade) ? Income taxes payable (current) 25,000 Long-term debt ? Common stock 300,000 Retained earnings ? Total ? Additional Information: Current ratio (at year end) 1.5 to 1 Total liabilities divided by total stockholders’ equity 0 .8 Inventory turnover based on sales and ending inventory 15 times Inventory turnover based on cost of goods sold and ending inventory 10.5 times Gross margin for the year P315,000 What was Trend’s balance in trade accounts payable at year-end? What was Trend’s balance in retained earnings at year-end? What was Trend’s balance in the inventory account at year-end? The balance of Accounts Receivables as at the end of the year is The balance of Long-term debt as at the end of the year is
18. The
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Assets: |
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Cash 25,000 |
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Inventory ? |
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Property, plant and equipment (net) 294,000 |
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Total 432,000 |
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Liabilities and |
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Accounts payable (trade) ? |
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Income taxes payable (current) 25,000 |
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Long-term debt ? |
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Common stock 300,000 |
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Total ? |
Additional Information:
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1.5 to 1 |
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Total liabilities divided by total stockholders’ equity |
0 .8 |
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Inventory turnover based on sales and ending inventory |
15 times |
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Inventory turnover based on cost of goods sold and ending inventory |
10.5 times |
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Gross margin for the year |
P315,000 |
- What was Trend’s balance in trade accounts payable at year-end?
- What was Trend’s balance in retained earnings at year-end?
- What was Trend’s balance in the inventory account at year-end?
- The balance of Accounts Receivables as at the end of the year is
- The balance of Long-term debt as at the end of the year is
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