Explanation Given Information: The assets and liabilities of Rayco Inc. for December 31, 2015 are, The assets are $ 105095 in cash, $ 6503 in accounts receivable, $ 190014 in merchandise inventory, $ 32507 in equipment. The liabilities are $ 6007 in accounts payable, $ 4761 in wages payable, $ 281017 in mortgage note payable. The owner’s capital is $ 42334 . The assets and liabilities of Rayco Inc. for December 31, 2016 are, The assets are $ 114975 in cash, $8918 in accounts receivable, $ 187915 in merchandise inventory, $ 29719 in equipment. The liabilities are $ 6832 in accounts payable, $ 5215 in wages payable, $ 279409 in mortgage note payable. The owner’s capital is $ 50071 . Formula used: Steps to create a comparative balance sheet is as follows: 1.List the current assets and draw a single line under the last entry 2.Add all the entries and the total current assets should be recorded and under the total draw a single line. 3.Now, repeat step 1 for plant and equipment assets and step 2 for total plant and equipment asses. 4.Add the category totals and underneath the grand total draw a double line. As, Total assets = Total current assets + Total plant and equipment 5.Find and record the total liabilities using the steps. 6.Follow step (1) for current liabilities and step (2) for total current liabilities. 7.Repeat step (1) for long term liabilities and step (2) for total long-term liabilities. 8.Add the category totals and underneath the total draw a single line. Total liabilities = Total current liabilities + Total long term liabilities 9.Find and record the total owner’s equity. 10.List the entries of equity and under the last entry draw a single line. 11.Add all the entries and under the last entry draw a single line. 12.Find and record the total liabilities and owner’s equality: As the total liabilities to the total owner’s equity and draw a double line underneath the grand total. Total liabilities and owner's equality = Total liabilities + Owner's equity 13.Confirm that the double line grand totals from step 1 and step 4 are the same. Total Assets = Total liabilities + Owner's equity 14. Create an additional column labeled percent: To record the results as a percent for each item divide the amount of the item by the total assets and then multiply by 100% Percent of total assets = amount of item total assets × 100 % Calculation: Consider the assets and liabilities of Rayco Inc. for December 31, 2015, The assets are $ 105095 in cash, $ 6503 in accounts receivable, $ 190014 in merchandise inventory, $ 32507 in equipment. The liabilities are $ 6007 in accounts payable, $ 4761 in wages payable, and $ 281017 in mortgage note payable. The owner’s capital is $ 42334 Therefore, the total assets is, Total Assets = $ 105095 + $ 6503 + $ 190014 + $ 32507 = $ 33419 For each item divide the amount of the item by the total assets and multiply 100% to compute the percentage of the each item. Cash = 1005095 334119 × 100 % = 31.5 % Accounts receivable = 6503 334119 × 100 % = 1.9 % Merchandise inventory = 190014 334119 × 100 % = 56.9 % Merchandise inventory = 190014 334119 × 100 % = 56.9 % Total current assets = 301612 334119 × 100 % = 90.3 % Now, Equipment = 32507 334119 × 100 % = 9.7 % Accounts payable = 6007 334119 × 100 % = 1.7 % Wages payable = 4761 334119 × 100 % = 1.4 % Total current liabilities = 10768 334119 × 100 % = 3.2 % As, Mortgage note payable = 281017 334119 × 100 % = 84.1 % And, Total liabilities = 291785 334119 × 100 % = 87.3 % B . Pierson, capital = 42334 334119 × 100 % = 12.7 % Consider the assets and liabilities of Rayco Inc. for December 31, 2016 are, The assets are $114975 in cash, $8918 in accounts receivable, $187915 in merchandise inventory, $29719 in equipment. The liabilities are $6832 in accounts payable, $5215 in wages payable, $279409 in mortgage note payable. The owner’s capital is $50071. Therefore, the total assets is Total Assets = $ 114975 + $ 8918 + $ 187915 + $ 29719 = $ 341527 For each item divide the amount of the item by the total assets and multiply 100% to compute the percentage of the each item

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ISBN: 8220103633802

Author: NOBLE

Publisher: RENT PEARS

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Chapter 21.1, Problem 2-3SC

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To calculate: A comparative balance sheet for Rayco for December 2015 and 2016 by application of information provided in exercise 3 and 4.

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Chapter 21.1, Problem 2-2SC

Chapter 21.1, Problem 2-4SC

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Chapter 21 Solutions

EBK BUSINESS MATH

Ch. 21.1 - Prob. 1-1SC Ch. 21.1 - Prob. 1-2SC Ch. 21.1 - Prob. 1-3SC Ch. 21.1 - Prob. 1-4SC Ch. 21.1 - Prob. 2-1SC Ch. 21.1 - Prob. 2-2SC Ch. 21.1 - Prob. 2-3SC Ch. 21.1 - Prob. 2-4SC Ch. 21.1 - Prob. 3-1SC Ch. 21.1 - Prob. 3-2SC

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A comparative balance sheet for Rayco for December 2015 and 2016 by application of information provided in exercise 3 and 4.

Solution Summary: The author calculates the comparative balance sheet for Rayco for December 2015 and 2016 by applying the information provided in exercise 3 and 4.

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To calculate: A comparative balance sheet for Rayco for December 2015 and 2016 by application of information provided in exercise 3 and 4.

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Chapter 21 Solutions