Vikarmbhai Tungsten Company, Incorporated, sells heavy construction equipment. There are 15,000 shares of capital stockoutstanding. The annual fiscal period ends on December 31. The following condensed trial balance was taken from thegeneral ledger on December 31, Current Year:Account TitlesCashAccounts receivable (net)Inventory, endingOperational assetsAccumulated depreciationLiabilitiesCapital stockRetained earnings, January 1, CurrentYearSales revenueSales returns and allowancesCost of goods soldSelling expenseAdministrative expenseBad debt expenseSales discountsIncome tax expenseTotalsDebit$34,400Credit16,30053,50041,800$18,50025,60073,80014,080148,5006,70079,20015,30015,7002,7006,8008,080$280,480$280,4802. The beginning balance in Accounts Receivable (net) was $16,400. Compute the receivables turnover ratio.NumeratorDenominatorReceivables Turnover Ratiotimes

Step 1: Determine the net sales Net Sales = total sales - sales return and allowances - sales…

Answered: Tungsten Company, Incorporated, sells…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 13E: Ratio of liabilities to stockholders equity and times interest earned The following data were taken...

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Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: Note: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $49,900; total assets, $179,400; common stock, $84,000; and retained earnings, $35,896.) CABOT CORPORATION Balance Sheet December 31 of current year Assets Liabilities and Equity Cash $ 20,000 Accounts payable $ 17,500 Short-term investments 8,200 Accrued wages payable 4,200 Accounts receivable, net 31,400 Income taxes payable 4,300 Merchandise inventory 36,150 Long-term note payable, secured by mortgage on plant assets 69,400 Prepaid expenses 2,850 Common stock 84,000 Plant assets, net 147,300 Retained earnings 66,500 Total assets $ 245,900 Total liabilities and equity $ 245,900 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 450,600 Cost of goods sold 296,950 Gross profit 153,650 Operating expenses 98,600 Interest expense 3,800…
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $51,900; total assets, $219,400; common stock, $81,000; and retained earnings, $34,953.) CABOT CORPORATION Balance Sheet December 31 of current year Assets Liabilities and Equity Cash $ 12,000 Accounts payable $ 16,500 Short-term investments 9,000 Accrued wages payable 3,800 Accounts receivable, net 33,200 Income taxes payable 4,700 Merchandise inventory 36,150 Long-term note payable, secured by mortgage on plant assets 71,400 Prepaid expenses 2,800 Common stock 81,000 Plant assets, net 151,300 Retained earnings 67,050 Total assets $ 244,450 Total liabilities and equity $ 244,450 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 455,600 Cost of goods sold 298,050 Gross profit 157,550 Operating expenses 99,500 Interest expense…
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory. $49,900: total assets. $209,400; common stock, $87,000; and retained earnings, $41,829.) CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash Short-term investments Accounts receivable, net Merchandise inventory 18, 000 Accounts payable 9, 200 30, 800 Income taxes payable 40,150 Long-term note payable, secured by 18,500 3, 800 4,400 65,400 Accrued wages payable mortgage on plant assets Prepaid expenses Plant assets, net 2,800 Common stock 151, 300 Retained earnings $ 252, 250 Total liabilities and equity 87, e00 73,150 $ 252, 250 Total assets CABOT CORPORATION Income Statement For Current Year Ended December 31 $ 453, 600 297,850 155,750 98, 500 4,800 52,450 21,129 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net…
Green House, LLP's balance sheet at the end of its most recent fiscal year, shows the following information: Assets Liabilities and Stockholders’ Equity Cash and marketable securities $ 23,015 Accounts payable $ 163,257 Accounts receivable 141,258 Notes payable 21,115 Inventories 212,444 Total current assets $ 376,717 Total current liabilities $ 184,372 Long-term debt 168,022 Total liabilities $ 352,394 Net plant and equipment 711,256 Common stock 313,299 Goodwill and other assets 89,879 Retained earnings 512,159 Total assets $1,177,852 Total liabilities and stockholders’ equity $1,177,582 In addition, the company reported the following: Net income = $156,042 Sales = $4,063,589 COGS = $2,641,333 Determine the following values for the company: Cash ratio _____________ Inventory…
The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash Marketable securities Accounts and notes receivable (net) Inventories Prepaid expenses Total current assets Current liabilities: Accounts and notes payable (short-term) Accrued liabilities Total current liabilities. $620,500 718,500 294,000 749,800 386,200 $2,769,000 1. Working capital 2. Current ratio 3. Quick ratio b. The liquidity of Albertini has in current assets relative to current liabilities. $411,800 298,200 $710,000 $496,000 558,000 186,000 529,500 338,500 $2,108,000 $434,000 186,000 $620,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year from the preceding year to the current year. The working capital, current ratio, and quick ratio have all Most of these changes are the result of an
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Please answer Requirement 4,5,6,7,8,9,10 Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $50,900; total assets, $199,400; common stock, $81,000; and retained earnings, $48,724.) CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Assets Cash $ 16,000 Accounts payable 8,200 Accrued wages payable 30, 600 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 3,050 Common stock 153, 300 Retained earnings 6 251,300 Total liabilities and equity : 18,500 4,400 3,000 63,400 81,000 81,000 6 251, 300 Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total asseta CABOT CORPORATION Income Statement Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense For Current Year Ended Decenber 31 $…
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $55,900; total assets, $189,400; common stock. $87,000, and retained earnings, $29,103.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement For Current Year Ended December 311 $455,600 298,450 157,150 99,000 4,400 53,758 21,653 $ 32,097 Sales Cost of goods sold i Gross profit Operating expenses Interest expense Income before taxes Income tax expense. Net income CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $10,000 Accounts payable 8,600 Accrued wages payable 30,400 Income taxes payable: 40,150 Long-term note payable, secured by mortgage on plant assets 2,550 Common stock 148,300 Retained earnings $ 240,000 Total liabilities and equity $ 17,500 5,000 3,900…
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $51,900; total assets, $249,400; common stock, $81,000; and retained earnings, $36,386.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 Cost of goods sold 297,950 Gross profit 150,650 98,700 4,200 47,750 19,236 $ 28,514 Operating expenses Interest expense Income before taxes Income tax expense Net income CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 18,000 8,400 30,400 Income taxes payable 34,150 Long-term note payable, secured by mortgage on plant assets Common stock 2,750 150,300 Retained earnings $244,000 Total liabilities and equity Accounts payable Accrued wages payable $ 18,500 4,000 3,200 72,400…

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