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What is XYZ's current ratio on December 31, 2021? -What is XYZ's Accounts Receivables Turnover for 2021? (assume Accounts Receivable, net was $500,000 on December 31, 2020) -What is XYZ's Asset Turnover for 2021? (assume total assets were $14 million on December 31, 2020) Account Balance Data       Debit Credit Cash 217,650   Accounts Receivable 545,000   Interest Receivable 1,200   Allowance for Doubtful Accounts   8,450 Merchandise Inventory 778,000

What is XYZ's current ratio on December 31, 2021? -What is XYZ's Accounts Receivables Turnover for 2021? (assume Accounts Receivable, net was $500,000 on December 31, 2020) -What is XYZ's Asset Turnover for 2021? (assume total assets were $14 million on December 31, 2020) Account Balance Data       Debit Credit Cash 217,650   Accounts Receivable 545,000   Interest Receivable 1,200   Allowance for Doubtful Accounts   8,450 Merchandise Inventory 778,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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-What is XYZ's current ratio on December 31, 2021?

-What is XYZ's Accounts Receivables Turnover for 2021? (assume Accounts Receivable, net was $500,000 on December 31, 2020)

-What is XYZ's Asset Turnover for 2021? (assume total assets were $14 million on December 31, 2020)

Account Balance Data    
  Debit Credit
Cash 217,650  
Accounts Receivable 545,000  
Interest Receivable 1,200  
Allowance for Doubtful Accounts   8,450
Merchandise Inventory 778,000  
Prepaid Insurance 30,000  
Notes Receivable    
Land 2,000,000  
Office Building 4,000,000  
Office Equipment 320,000  
Store Building 9,000,000  
Store Equipment 3,560,000  
Accumulated Depreciation - office building and equipment   1,580,000
Accumulated Depreciation - store building and equipment   4,126,000
Goodwill 700,000  
     

 

A 8 XYZ Co. 9 Balance Sheet 10 December 31, 2021 11 12 Assets 13 Current Assets: 14 Cash 205,150 15 Accounts Receivable 491,870 16 Interest Receivable 1,331 17 Merchandise Inventory 778,000 18 Prepaid Insurance 20,000 19 Total Current Assets 1,496,351 20 Non-Current Assets: 21 Land 2,000,000 4,000,000 Office Building Office Equipment Accumulated depreciation-office buildings and equip 22 23 320,000 (1,620,000) 24 25 Store Building 9,000,000 26 Store Equipment 3,560,000 (4,216,000) 27 Accumulated depreciation-store buildings and 28 Goodwill 700,000 29 Total Long-Term Assets 13,744,000 30 Total Assets 15,240,351 31 32 Liabilities 33 Current Liabilities: Accounts Payable Income Tax Payable 34 194,300 44,000 90,000 35 36 Unearned Revenue 37 Total Current Liabilities 328,300 38 Non-Current Liabilities: 39 Bonds Payable 518,000 40 Total Liabilities 846,300 41 42 Stockholders' Equity 43 Common Stock 1,700,000 44 Preferred 5% Stock 1,280,000 Paid-In Capital in Excess of Par - Common Stock Paid-In Capital in Excess of Par - Preferred Stock Treasury Stock Paid-In Capital - Treasury Retained Earnings 50 Total Stockholders' Equity 51 Total Liabilities and Stockholders' Equity 45 736,800 46 170,000 47 (178,200) 13,000 48 49 10,672,451 14,394,051 15,240,351
Transcribed Image Text:A 8 XYZ Co. 9 Balance Sheet 10 December 31, 2021 11 12 Assets 13 Current Assets: 14 Cash 205,150 15 Accounts Receivable 491,870 16 Interest Receivable 1,331 17 Merchandise Inventory 778,000 18 Prepaid Insurance 20,000 19 Total Current Assets 1,496,351 20 Non-Current Assets: 21 Land 2,000,000 4,000,000 Office Building Office Equipment Accumulated depreciation-office buildings and equip 22 23 320,000 (1,620,000) 24 25 Store Building 9,000,000 26 Store Equipment 3,560,000 (4,216,000) 27 Accumulated depreciation-store buildings and 28 Goodwill 700,000 29 Total Long-Term Assets 13,744,000 30 Total Assets 15,240,351 31 32 Liabilities 33 Current Liabilities: Accounts Payable Income Tax Payable 34 194,300 44,000 90,000 35 36 Unearned Revenue 37 Total Current Liabilities 328,300 38 Non-Current Liabilities: 39 Bonds Payable 518,000 40 Total Liabilities 846,300 41 42 Stockholders' Equity 43 Common Stock 1,700,000 44 Preferred 5% Stock 1,280,000 Paid-In Capital in Excess of Par - Common Stock Paid-In Capital in Excess of Par - Preferred Stock Treasury Stock Paid-In Capital - Treasury Retained Earnings 50 Total Stockholders' Equity 51 Total Liabilities and Stockholders' Equity 45 736,800 46 170,000 47 (178,200) 13,000 48 49 10,672,451 14,394,051 15,240,351
A. B D E 8 XYZ Co. Income Statement 10 For the year ending December 31, 2021 11 12 Sales 13 Cost of Goods Sold Gross Profit 5,335,000 3,500,000 1,835,000 14 enter a formula here! 16 Selling Expenses: 17 Sales Salaries Expense 385,000 18 Sales Commissions 185,000 Advertising Expense Miscellaneous Selling Expense Total Selling Expense 19 150,000 20 14,000 21 734,000 enter a formula here! 23 General & Administrative Expenses: 24 Office Salaries Expense Office Supplies Expense Office Rent Expense Insurance Expense Delivery Expense Store Supplies Expense Bad Debt Expense Depreciation Expense - Office Building and Equipment Depreciation Expense - Store Building and Equipment Miscellaneous Administrative Expense Total General & Administrative Expense 170,000 10,000 50,000 10,000 30,000 21,000 44,680 70,000 25 26 27 28 29 30 31 32 190,000 33 7,500 34 35 603,180 enter a formula here! 36 Income from Operations 37 497,820 enter a formula here! 38 Other Income / Expense: 39 Interest Revenue 40 Interest Expense 30,131 (32,500) 41 (2,369) enter a formula here! 42 43 Net income before income tax 495,451 enter a formula here! 44 45 46 Net Income after tax 140,500 354,951 enter a formula here!
Transcribed Image Text:A. B D E 8 XYZ Co. Income Statement 10 For the year ending December 31, 2021 11 12 Sales 13 Cost of Goods Sold Gross Profit 5,335,000 3,500,000 1,835,000 14 enter a formula here! 16 Selling Expenses: 17 Sales Salaries Expense 385,000 18 Sales Commissions 185,000 Advertising Expense Miscellaneous Selling Expense Total Selling Expense 19 150,000 20 14,000 21 734,000 enter a formula here! 23 General & Administrative Expenses: 24 Office Salaries Expense Office Supplies Expense Office Rent Expense Insurance Expense Delivery Expense Store Supplies Expense Bad Debt Expense Depreciation Expense - Office Building and Equipment Depreciation Expense - Store Building and Equipment Miscellaneous Administrative Expense Total General & Administrative Expense 170,000 10,000 50,000 10,000 30,000 21,000 44,680 70,000 25 26 27 28 29 30 31 32 190,000 33 7,500 34 35 603,180 enter a formula here! 36 Income from Operations 37 497,820 enter a formula here! 38 Other Income / Expense: 39 Interest Revenue 40 Interest Expense 30,131 (32,500) 41 (2,369) enter a formula here! 42 43 Net income before income tax 495,451 enter a formula here! 44 45 46 Net Income after tax 140,500 354,951 enter a formula here!
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