31-Dec-07 31Dec06
Cash $ 65,000 $ 45,000
Accounts Receivable 80,000 50,000
Inventory 55,000 25,000
Property, Plant, and Equip 500,000 400,000
Total assets $700,000 $520,000
======== ========
Accounts Payable 75,000 60,000
Bonds Payable (due in 2009) 100,000 100,000
Capital Stock 300,000 200,000
Retained Earnings 225,000 160,000
Total liabilities & Equity $700,000 $520,000
Required: If income for 2007 was $150,000, provide the following information as of December 31, 2007: (Don?t forget the articulation of statements discussed during Week 2 and 3- including retained earnings).
a. Dividends declared (2007 only) = $__________
b. Current ratio (2007 only)= ___________
c. Debt-to-equity ratio (2007 only)= __________
d. Debt ratio (2007 only) = __________
2.The accounts of the Capitan Company are shown below:
Capitan Company
List of Accounts
December 31, 2007
Accounts Payable $20,000
Accounts Receivable 18,000
Accumulated Depreciation 11,000
Capital Stock 75,000
Cash 85,000
Cost of Goods Sold 12,000
Equipment and Buildings 81,000
Inventory 15,000
Long-Term Investment 30,000
Land 27,000
Marketable Securities 3,000
Mortgage Payable 89,000
Patents 4,000
Prepaid Rent 6,000
Rent Expense 24,000
Retained Earnings ?
Sales 49,000
Salary Expense 19,000
Supplies 6,000
Taxes Payable 11,000
Required:
Prepare in good form a classified balance sheet at December 31, 2007, for the Capitan Company. Assume that no dividends were declared during 2007.
3.The following information is available for the Koufax Company for the year ending Dec. 31, 2007:
Sales 400,000
Depreciation expense 50,000
Insurance expense 10,000
Salaries expense 60,000
Delivery expense 2,000
Cost of goods sold 180,000
Interest expense 12,000
Rental income 4,000
Income tax rate 30%
Beginning Retained Earnings50,000
Dividends25,000
Required:
Prepare two income statements and the Retained Earnings Statement. Use the single-step format and multiple-step income formats.
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