Using Financial Statements for 2020, sales to working capital for the year 2020 is 2.41. True or False?
Using Financial Statements for 2020, sales to working capital for the year 2020 is 2.41. True or False?
Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
Section: Chapter Questions
Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...
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Question
Using Financial Statements for 2020, sales to
True or False?
![Balance Sheet
2020
Income Statement
2020
Assets
Sales
$
530,000
Cash
$ 280,000
Cost of Goods Sold
148,400
Accounts Receivable
117,600
Gross Profit
$
381,600
Inventory
89,600
Interest Income
53,000
14,000
$ 501,200
Prepaid Expenses
Total Income
$
434,600
Total Current Assets
Sales Salaries
121,900
Fixed Assets
33,600
Office Salaries
26,500
Total Assets
$ 534,800
Office Equipment Rental
37,100
Liabilities & Equity
Interest Expense
15,900
Accounts Payable
$
90,916
General & Administrative
4,770
Notes Payable
48,132
Total Expenses
206,170
Accrued Expenses
42,784
Income Before Tax
228,430
Taxes Payable
37,436
Income Taxes
132,500
Deferred Taxes
48,132
Net Income
$
95,930
Total Current Liabilities
$ 267,400
Long-Term Notes
123,004
Total Liabilities
$ 390,404
Capital Stock
53,480
Retained Earnings
90,916
$ 144,396
$ 534,800
Total Equity
Total Liabilities & Equity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3f89257-674a-49c6-9848-e001dbd2c774%2Fd7eaf7fb-44fa-4849-b628-359b9383b703%2F7oeqtd_processed.png&w=3840&q=75)
Transcribed Image Text:Balance Sheet
2020
Income Statement
2020
Assets
Sales
$
530,000
Cash
$ 280,000
Cost of Goods Sold
148,400
Accounts Receivable
117,600
Gross Profit
$
381,600
Inventory
89,600
Interest Income
53,000
14,000
$ 501,200
Prepaid Expenses
Total Income
$
434,600
Total Current Assets
Sales Salaries
121,900
Fixed Assets
33,600
Office Salaries
26,500
Total Assets
$ 534,800
Office Equipment Rental
37,100
Liabilities & Equity
Interest Expense
15,900
Accounts Payable
$
90,916
General & Administrative
4,770
Notes Payable
48,132
Total Expenses
206,170
Accrued Expenses
42,784
Income Before Tax
228,430
Taxes Payable
37,436
Income Taxes
132,500
Deferred Taxes
48,132
Net Income
$
95,930
Total Current Liabilities
$ 267,400
Long-Term Notes
123,004
Total Liabilities
$ 390,404
Capital Stock
53,480
Retained Earnings
90,916
$ 144,396
$ 534,800
Total Equity
Total Liabilities & Equity
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