Question

Question 3315 pts

SLO 2 Complete the financial statements of accounting. Identify each according to GAAP.

Consider the following:

Santos Tier I Center Balance Sheet December 31, 20--
Assets			Liabilities
Current assets:			Current liabilities:
Cash	$13,125		Accounts payable	$10,500
Accounts receivable	18,450		Sales tax payable	825
Merch. inventory	55,950		Wages payable	300
Supplies	2,250		Total current liability		$ 11,625
Prepaid insurance	1,575		Noncurrent liab.:
Total current assets		$ 91,350	Mortgage payable		13,650
Equipment:			Total liabilities		$ 25,275
Furniture and fixtures	$21,000		Stockholders' Equity
Less accum. depr.	(6,000)		Common stock		40,000
Total equipment		15,000	Retained earnings		41,075
Total assets		$106,350	Total liabilities and stockholders' equity		$106,350

Additional information:

Total stockholders' equity, January 1, 20--	$71,250
Accounts receivable, January 1, 20--	19,650
Net income for 20--	21,600
Merchandise inventory, January 1, 20--	60,750
Net credit sales for 20--	105,000

Instructions:

1. You have been provided with the balance sheet for Santos Tier I Center.
2. Calculate the following ratios.
3. Round answers to two (2) decimal places.
4. Please Note: Take your time to make sure that you place the decimals in the correct place. If the decimal is in the wrong place, your answer is not correct. (15 points total)

Ratio Information	Answer
a.  The current ratio for 20--		to 1
b. Return on stockholders' equity for 20--		%
c. Accounts receivable turnover		times
The average number of days the receivables were on the books for 20--		days
d.  The ratio of liabilities to stockholders' equity for 20--		to 1

Answer 1