Question
In: Finance
Construct the current assets section of the balance sheet from the following data. (Use cash as...
Construct the current assets section of the balance sheet from the following data. (Use cash as a plug figure after computing the other values.) (Use a 360-day year. Do not round intermediate calculations.) Yearly sales (credit) $ 371,000 Inventory turnover 7 times Current liabilities $ 62,000 Current ratio 2 Average collection period 36 days
Current assets:
cash:
Account receivable:
inventory:
total current assets:
Solutions
Expert Solution
| Average collection period = ( Accounts receivable / Credit sales ) * Days in a year | |
| 36 = ( Accounts receivable / 371000 ) * 360 | |
| Accounts receivable = 36 * 371000 / 360 = | 37100 |
| Current ratio = Current assets / Current liabilities | |
| 2 = Current assets / 62000 | |
| Current assets = 2 * 62000 = | 124000 |
| Inventory turnover = Sales / Inventory | |
| 7 = 371000 / Inventory | |
| Inventory = 371000 / 7 = | 53000 |
| Cash = Total current assets - Accounts receivable - Inventory = 124000 - 37100 - 53000 = | 33900 |
| Current assets : | |
| cash | 33900 |
| Accounts receivable | 37100 |
| Inventory | 53000 |
| Total current assets | 124000 |
jeff jeffy answered 3 years agoRelated Solutions
Complete the following Balance Sheet ASSETS Current Assets Cash
Complete the following Balance
Sheet
ASSETS
Current
Assets
Cash
$ 250,000
Accounts
Receivable
($_________
less allowance for Doubtful
Accounts)
$1,320,000
Inventory
$1,410,000
Total Current
Assets
$_________
Land
$_________
Plant &
Equipment ($2,800,000 less
Accumulated Depreciation
________)
$2,110,000
TOTAL
ASSETS
$5,390,000
LIABILITIES AND
STOCKHOLDERS EQUITY
Current
Liabilities
Accounts
Payable
$ 620,000
Notes
Payable to
banks
$ 130,000
Accrued
Wages
$________
Total...
Following is the current balance sheet for a local partnership of doctors: Cash and current assets...
Following is the current balance sheet for a local partnership
of doctors:
Cash and current assets
$
78,000
Liabilities
$
70,000
Land
212,000
A, capital
50,000
Building and equipment
(net)
170,000
B, capital
70,000
C, capital
120,000
D, capital
150,000
Totals
$
460,000
Totals
$
460,000
The following questions represent independent
situations:
E is going to invest enough money in this partnership to receive
a 25 percent interest. No goodwill or bonus is to be recorded. How
much should E...
Following is the current balance sheet for a local partnership of doctors: Cash and current assets...
Following is the current balance sheet for a local partnership
of doctors:
Cash and current assets
$
81,000
Liabilities
$
78,000
Land
236,000
A, capital
58,000
Building and equipment (net)
183,000
B, capital
78,000
C, capital
128,000
D, capital
158,000
Totals
$
500,000
Totals
$
500,000
The following questions represent independent
situations:
E is going to invest enough money in this partnership to receive
a 20 percent interest. No goodwill or bonus is to be recorded. How
much should E...
Following is the current balance sheet for a local partnership of doctors: Cash and current assets...
Following is the
current balance sheet for a local partnership of doctors:
Cash and current
assets
$
43,000
Liabilities
$
60,000
Land
202,000
A, capital
40,000
Building and
equipment (net)
165,000
B, capital
60,000
C, capital
110,000
D, capital
140,000
Totals
$
410,000
Totals
$
410,000
The following
questions represent independent situations:
E is going to invest
enough money in this partnership to receive a 20 percent interest.
No goodwill or bonus is to be recorded. How much should E...
Following is the current balance sheet for a local partnership of doctors: Cash and current assets...
Following is the current balance sheet for a local partnership
of doctors:
Cash and current assets
$
37,000
Liabilities
$
52,000
Land
172,000
A, capital
32,000
Building and equipment (net)
161,000
B, capital
52,000
C, capital
102,000
D, capital
132,000
Totals
$
370,000
Totals
$
370,000
The following questions represent independent
situations:
E is going to invest enough money in this partnership to receive
a 25 percent interest. No goodwill or bonus is to be recorded. How
much should E...
Following is the current balance sheet for a local partnership of doctors: Cash and current assets...
Following is the current balance sheet for a local partnership
of doctors:
Cash and current assets
$
60,000
Liabilities
$
72,000
Land
230,000
A, capital
52,000
Building and equipment (net)
180,000
B, capital
72,000
C, capital
122,000
D, capital
152,000
Totals
$
470,000
Totals
$
470,000
The following questions represent independent
situations:
E contributes $105,000 in cash to the business to receive a 20
percent interest in the partnership. Goodwill is to be recorded.
Profits and losses have previously been...
Following is the current balance sheet for a local partnership of doctors: Cash and Current Assets...
Following is the current balance sheet for a local partnership
of doctors: Cash and Current Assets $ 39,000 Liabilities $ 52,000
Land 234,000 Adams, cap 26,000 Building 130,000 Barnes, cap 52,000
Cordas, cap 117,000 Total $403,000 Davis, cap 156,000 Total
$403,000
a. Eden contributes $80,000 into the partnership for a 25%
interest. The four original partners share profits and losses
equally. Using the bonus method, prepare the journal entry to
record Eden's admission
. b. Instead of contributing $80,000 as...
Following is the current balance sheet for a local partnership of doctors: Cash and current assets...
Following is the current balance sheet for a local partnership
of doctors:
Cash and current
assets . . . . . . . . . . . . . . . . . . . . .
$ 30,000
Land . . . . . . . . . . . . . . . . . . . . . . .
180,000
Building and equipment
(net) . . . . . . . . . . . ....
Following is the current balance sheet for a local partnership of doctors: Cash and current assets...
Following is the current balance sheet for a local partnership
of doctors:
Cash and current assets
$
43,000
Liabilities
$
60,000
Land
202,000
A, capital
40,000
Building and equipment
(net)
165,000
B, capital
60,000
C, capital
110,000
D, capital
140,000
Totals
$
410,000
Totals
$
410,000
The following questions represent independent
situations:
E is going to invest enough money in this partnership to receive
a 20 percent interest. No goodwill or bonus is to be recorded. How
much should E...
Following is the current balance sheet for a local partnership of doctors: Cash and current assets...
Following is the current balance sheet for a local partnership
of doctors: Cash and current assets $ 50,000 Liabilities $ 90,000
Land 290,000 A, capital 70,000 Building and equipment (net) 220,000
B, capital 90,000 C, capital 140,000 D, capital 170,000 Totals $
560,000 Totals $ 560,000 The following questions represent
independent situations: E is going to invest enough money in this
partnership to receive a 20 percent interest. No goodwill or bonus
is to be recorded. How much should E...
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