Homework Help is Here – Start Your Trial Now!
Business
Accounting
Information for Patel Corporation is given below: Patel Corporation Balance Sheet December 31, 2021 630,000 189,000 Cash 350,000 Accounts payable 1,950,000 Income taxes payable 2,439,000 Miscellaneous accrued payables Bonds payable (8%, due 2023) 1,983,000 Preferred stock ($100 par, 6% 261,000 cumulative nonparticipating) 75,000 Common stock (no par, 60,000 $ 7.058,000 shares authorized, issued Accounts receivable (net) Inventories 275,000 1,875,000 Plant and equipment, net of depreciation Patents Other intangible assets 750,000 Total Assets 1,125,000 2,439,000 and outstanding) Retained earnings Treasury stock-1,500 shares of preferred Total Equities (225,000) $ 7.058.000 Patel Corporation Income Statement Year ended December 31, 2021 Net sales $ 9,000,000 6,000,000 Cost of goods sold Gross profit 3,000,000 Operating expenses (including bond interest expense). Income before income taxes 1,500,000 1,500,000 450,000 Income tax Net income $ 1,050,000 Additional information: There are no preferred dividends in arrears, the balances in the Accounts Receivable and Inventory accounts are unchanged from January 1, 2021, and there were no changes in the Bonds Payable, Preferred Stock, or Common Stock accounts during 2021. Assume that preferred dividends for the current year have not been declared. Calculate the following ratios at December 31, 2021, show calculations for full credit. 1. Current ratio 2. Acid-test ratio 3. Accounts receivable turnover

Information for Patel Corporation is given below: Patel Corporation Balance Sheet December 31, 2021 630,000 189,000 Cash 350,000 Accounts payable 1,950,000 Income taxes payable 2,439,000 Miscellaneous accrued payables Bonds payable (8%, due 2023) 1,983,000 Preferred stock ($100 par, 6% 261,000 cumulative nonparticipating) 75,000 Common stock (no par, 60,000 $ 7.058,000 shares authorized, issued Accounts receivable (net) Inventories 275,000 1,875,000 Plant and equipment, net of depreciation Patents Other intangible assets 750,000 Total Assets 1,125,000 2,439,000 and outstanding) Retained earnings Treasury stock-1,500 shares of preferred Total Equities (225,000) $ 7.058.000 Patel Corporation Income Statement Year ended December 31, 2021 Net sales $ 9,000,000 6,000,000 Cost of goods sold Gross profit 3,000,000 Operating expenses (including bond interest expense). Income before income taxes 1,500,000 1,500,000 450,000 Income tax Net income $ 1,050,000 Additional information: There are no preferred dividends in arrears, the balances in the Accounts Receivable and Inventory accounts are unchanged from January 1, 2021, and there were no changes in the Bonds Payable, Preferred Stock, or Common Stock accounts during 2021. Assume that preferred dividends for the current year have not been declared. Calculate the following ratios at December 31, 2021, show calculations for full credit. 1. Current ratio 2. Acid-test ratio 3. Accounts receivable turnover

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please help me with this problem. copy and paste only

Information for Patel Corporation is given below: Patel Corporation Balance Sheet December 31, 2021 350,000 Accounts payable 1,950,000 Income taxes payable 2,439,000 Miscellaneous accrued payables Cash $ 630,000 Accounts receivable (net) 189,000 275,000 1,875,000 Inventories Bonds payable (8%, due 2023) Plant and equipment, net of depreciation 1,983,000 Preferred stock ($100 par, 6% 261,000 cumulative nonparticipating) 75,000 Common stock (no par, 60,000 $ 7,058,000 Patents 750,000 Other intangible assets Total Assets shares authorized, issued and outstanding) Retained earnings Treasury stock-1,500 shares of preferred Total Equities 1,125,000 2,439,000 (225,000) $ 7,058,000 Patel Corporation Income Statement Year ended December 31, 2021 Net sales Cost of goods sold Gross profit Operating expenses (including bond interest expense) Income before income taxes $ 9,000,000 6,000,000 3,000,000 1,500,000 1,500,000 450,000 $ 1,050,000 Income tax Net income Additional information: There are no preferred dividends in arrears, the balances in the Accounts Receivable and Inventory accounts are unchanged from January 1, 2021, and there were no changes in the Bonds Payable, Preferred Stock, or Common Stock accounts during 2021. Assume that preferred dividends for the current year have not been declared. Calculate the following ratios at December 31, 2021, show calculations for full credit. 1. Current ratio 2. Acid-test ratio 3. Accounts receivable turnover 4. Inventory turnover 5. Profit margin on sales 6. Return on common stockholders' equity 7. Debt to assets ratio
Transcribed Image Text:Information for Patel Corporation is given below: Patel Corporation Balance Sheet December 31, 2021 350,000 Accounts payable 1,950,000 Income taxes payable 2,439,000 Miscellaneous accrued payables Cash $ 630,000 Accounts receivable (net) 189,000 275,000 1,875,000 Inventories Bonds payable (8%, due 2023) Plant and equipment, net of depreciation 1,983,000 Preferred stock ($100 par, 6% 261,000 cumulative nonparticipating) 75,000 Common stock (no par, 60,000 $ 7,058,000 Patents 750,000 Other intangible assets Total Assets shares authorized, issued and outstanding) Retained earnings Treasury stock-1,500 shares of preferred Total Equities 1,125,000 2,439,000 (225,000) $ 7,058,000 Patel Corporation Income Statement Year ended December 31, 2021 Net sales Cost of goods sold Gross profit Operating expenses (including bond interest expense) Income before income taxes $ 9,000,000 6,000,000 3,000,000 1,500,000 1,500,000 450,000 $ 1,050,000 Income tax Net income Additional information: There are no preferred dividends in arrears, the balances in the Accounts Receivable and Inventory accounts are unchanged from January 1, 2021, and there were no changes in the Bonds Payable, Preferred Stock, or Common Stock accounts during 2021. Assume that preferred dividends for the current year have not been declared. Calculate the following ratios at December 31, 2021, show calculations for full credit. 1. Current ratio 2. Acid-test ratio 3. Accounts receivable turnover 4. Inventory turnover 5. Profit margin on sales 6. Return on common stockholders' equity 7. Debt to assets ratio
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Information system controls
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS