The bookkeeper for Rakovâs Country Music Bar left thisincomplete balance sheet. Rakovâs working capital is $180,000 andits debt to assets ratio is 40 percent. Complete the balance sheetby supplying the missing amounts.
Assets Current assets Cash $42,000 Accounts receivable 84,000 Inventory Prepaid expenses 18,000 Total current assets Long-term assets Building Less: Accumulated depreciation (78,000) Total long-term assets 420,000 Total assets Liabilities and StockholdersâEquity Liabilities Current liabilities Accounts payable Notes payable 24,000 Income tax payable 21,000 Total current liabilities 75,000 Long-term liabilities Mortgage payable Total liabilities Stockholdersâ equity Common stock 210,000 Retained earnings Total stockholdersâ equity Total liabilities and stockholdersâequity
The bookkeeper for Rakovâs Country Music Bar left thisincomplete balance sheet. Rakovâs working capital is $180,000 andits debt to assets ratio is 40 percent. Complete the balance sheetby supplying the missing amounts.
| Assets | |
| Current assets | |
| Cash | $42,000 |
| Accounts receivable | 84,000 |
| Inventory | |
| Prepaid expenses | 18,000 |
| Total current assets | |
| Long-term assets | |
| Building | |
| Less: Accumulated depreciation | (78,000) |
| Total long-term assets | 420,000 |
| Total assets | |
| Liabilities and StockholdersâEquity | |
| Liabilities | |
| Current liabilities | |
| Accounts payable | |
| Notes payable | 24,000 |
| Income tax payable | 21,000 |
| Total current liabilities | 75,000 |
| Long-term liabilities | |
| Mortgage payable | |
| Total liabilities | |
| Stockholdersâ equity | |
| Common stock | 210,000 |
| Retained earnings | |
| Total stockholdersâ equity | |
| Total liabilities and stockholdersâequity |
Unlock all answers
Related questions
Below you will find selected information (in millions) fromCoca-Cola Co.âs 2012 Annual Report.
Income Taxes Payable | $471 |
Short-term Investments and Marketable Securities | 8,109 |
Cash | 8,442 |
Other non-current Liabilities | 10,449 |
Common Stock | 1,760 |
Receivables | 4,812 |
Other Current Assets | 2,973 |
Long-term Investments | 10,448 |
Other Non-current Assets | 3,585 |
Property, Plant and Equipment | 23,486 |
Trademarks | 6,527 |
Other Intangible Assets | 20,810 |
Allowance for Doubtful Accounts | 53 |
Accumulated Depreciation | 9,010 |
Accounts Payable | 8,680 |
Short Term Notes Payable | 17,874 |
Prepaid Expenses | 2,781 |
Other Current Liabilities | 796 |
Long-Term Liabilities | 14,736 |
Paid-in-Capital in Excess of Par Value | 11,379 |
Retained Earnings | 55,038 |
Inventories | 3,264 |
Treasury Stock | 35,009 |
Other information taken from the Annual Report.
Sales Revenue for 2012 | $48,017 |
Cost of Goods Sold for 2012 | 19,053 |
Net Income for 2012 | 9,019 |
Inventory Balance on 12/31/11 | 3,092 |
Net Accounts Receivable Balance on 12/31/11 | 4,920 |
Total Assets on 12/31/11 | 79,974 |
Equity Balance on 12/31/11 | 31,921 |
Required: 1: Using the information provided prepare a BalanceSheet. Separate the current assets from non-current assets andprovide a total for each. Also, separate the current liabilitiesfrom the non-current liabilities and provide a total foreach.
2: Using the Balance Sheet from your answer above, calculate theCurrent Ratio and Return on common stockholdersâ equity.
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.80 on December 31, 20Y2.
| Marshall Inc. |
| Comparative Retained Earnings Statement |
| For the Years Ended December 31, 20Y2 and 20Y1 |
| 1 | 20Y2 | 20Y1 | |
| 2 | Retained earnings, January 1 | $3,712,000.00 | $3,262,000.00 |
| 3 | Net income | 589,000.00 | 560,000.00 |
| 4 | Total | $4,301,000.00 | $3,822,000.00 |
| 5 | Dividends: | ||
| 6 | On preferred stock | $10,000.00 | $10,000.00 |
| 7 | On common stock | 100,000.00 | 100,000.00 |
| 8 | Total dividends | $110,000.00 | $110,000.00 |
| 9 | Retained earnings, December 31 | $4,191,000.00 | $3,712,000.00 |
| Marshall Inc. |
| Comparative Income Statement |
| For the Years Ended December 31, 20Y2 and 20Y1 |
| 1 | 20Y2 | 20Y1 | |
| 2 | Sales | $10,840,000.00 | $10,000,000.00 |
| 3 | Cost of goods sold | 6,000,000.00 | 5,440,000.00 |
| 4 | Gross profit | $4,840,000.00 | $4,560,000.00 |
| 5 | Selling expenses | $2,180,000.00 | $2,000,000.00 |
| 6 | Administrative expenses | 1,627,500.00 | 1,500,000.00 |
| 7 | Total operating expenses | $3,807,500.00 | $3,500,000.00 |
| 8 | Income from operations | $1,032,500.00 | $1,060,000.00 |
| 9 | Other income | 99,500.00 | 20,000.00 |
| 10 | $1,132,000.00 | $1,080,000.00 | |
| 11 | Other expense (interest) | 133,000.00 | 120,000.00 |
| 12 | Income before income tax | $999,000.00 | $960,000.00 |
| 13 | Income tax expense | 410,000.00 | 400,000.00 |
| 14 | Net income | $589,000.00 | $560,000.00 |
| Marshall Inc. |
| Comparative Balance Sheet |
| December 31, 20Y2 and 20Y1 |
| 1 | 20Y2 | 20Y1 | |
| 2 | Assets | ||
| 3 | Current assets: | ||
| 4 | Cash | $1,050,000.00 | $950,000.00 |
| 5 | Marketable securities | 301,000.00 | 420,000.00 |
| 6 | Accounts receivable (net) | 584,000.00 | 500,000.00 |
| 7 | Inventories | 410,000.00 | 380,000.00 |
| 8 | Prepaid expenses | 109,000.00 | 20,000.00 |
| 9 | Total current assets | $2,454,000.00 | $2,270,000.00 |
| 10 | Long-term investments | 800,000.00 | 800,000.00 |
| 11 | Property, plant, and equipment (net) | 5,750,000.00 | 5,184,000.00 |
| 12 | Total assets | $9,004,000.00 | $8,254,000.00 |
| 13 | Liabilities | ||
| 14 | Current liabilities | $863,000.00 | $792,000.00 |
| 15 | Long-term liabilities: | ||
| 16 | Mortgage note payable, 6%, | $200,000.00 | $0.00 |
| 17 | Bonds payable, 4%, | 3,000,000.00 | 3,000,000.00 |
| 18 | Total long-term liabilities | $3,200,000.00 | $3,000,000.00 |
| 19 | Total liabilities | $4,063,000.00 | $3,792,000.00 |
| 20 | Stockholdersâ Equity | ||
| 21 | Preferred 4% stock, $5 par | $250,000.00 | $250,000.00 |
| 22 | Common stock, $5 par | 500,000.00 | 500,000.00 |
| 23 | Retained earnings | 4,191,000.00 | 3,712,000.00 |
| 24 | Total stockholdersâ equity | $4,941,000.00 | $4,462,000.00 |
| 25 | Total liabilities and stockholdersâ equity | $9,004,000.00 | $8,254,000.00 |
Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): Assume a 365-day year.
| 1. | Working capital |
| 2. | Current ratio. |
| 3. | Quick ratio |
| Accounts receivable turnover | |
| Number of daysâ sales in receivables | |
| 6. | Inventory turnover |
| 7. | Number of daysâ sales in inventory |
| 8. | Ratio of fixed assets to long-term liabilities |
| 9. | Ratio of liabilities to stockholdersâ equity |
| 10. | Times interest earned |
| 11. | Asset turnover. |
| 12. | Return on total assets. |
| 13. | Return on stockholdersâ equity. |
| 14. | Return on common stockholdersâ equity |
| 15. | Earnings per share on common stock. |
| 16. | Price-earnings ratio |
| 17. | Dividends per share of common stock |
| 18. | Dividend yield |
Questions
Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): Assume a 365-day year.
| 1. Working Capital | $ |
| 2. Current ratio | |
| 3. Quick ratio | |
| 4. Accounts receivable turnover | |
| 5. Number of days' sales in receivables | |
| 6. Inventory turnover | |
| 7. Number of daysâ sales in inventory | |
| 8. Ratio of fixed assets to long-term liabilities | |
| 9. Ratio of liabilities to stockholdersâ equity | |
| 10. Times interest earned | |
| 11. Asset turnover | |
| 12. Return on total assets | % |
| 13. Return on stockholdersâ equity | % |
| 14. Return on common stockholdersâ equity | % |
| 15. Earnings per share on common stock | $ |
| 16. Price-earnings ratio | |
| 17. Dividends per share of common stock | $ |
| 18. Dividend yield | % |
