Question

In: Accounting

Balance sheet accounts for Thin Man Securities on 12/31/2017 are as follows: Cash                            &nbsp

Balance sheet accounts for Thin Man Securities on 12/31/2017 are as follows:

Cash                                                                       $106,000

Marketable Securities                                               374,000

Accounts Receivable, Net                                         240,000

Inventory                                                                 260,000

Prepaid Expenses                                                       42,000

            Total  Current Assets                                        $1,022,000

      Accounts Payable                                                      290,000

      Other Accrued Liabilities                                              75,000

      Short Term Debt                                                         130,000

            Total Current Liabilities                                    $ 495,000

A. Calculate the working capital, current ratio and acid test ratio for Thin Man Securities

B. In a separate set of calculations, show the “Total effect” of all the transactions below in a new balance sheet.  Then, recalculate the ratios calculated in A.

1. Credit sales for the year of $750,000, paid in cash

2. Collected Accounts Receivable of $45,000

3. Purchased Inventory on Account, $255,000

4. Issued 1000 shares of common stock at $20/share

5. Wrote off $25,000 of uncollectible accounts

6. Declared a cash dividend of $50,000

7. Paid the cash dividend of $50,000

8. Borrowed cash of $75,000 on a short-term Loan

Solutions

Expert Solution

for calculation of the new balances, refer to the image below -


Related Solutions

T. P. Jarmon Company Balance Sheet for 12/31/2017 and 12/31/2018 Assets 2017 2018 Cash $15,000 $14,000...
T. P. Jarmon Company Balance Sheet for 12/31/2017 and 12/31/2018 Assets 2017 2018 Cash $15,000 $14,000 Marketable securities 6,000 6,200 Accounts receivable 42,000 33,000 Inventory 51,000 84,000 Prepaid rent 1,200 1,100 Total current assets $115,200 $138,300 Net plant and equipment $286,000 $270,000 Total assets $401,200 $408,300 Liabilities and Equity 2017 2018 Accounts payable $48,000 $57,000 Accruals 6,000 5,000 Notes payable 15,000 13,000 Total current liabilities $69,000 $75,000 Long-term debt $160,000 $150,000 Common stockholders' equity $172,200 $183,300 Total liabilities and equity...
BLOSSOM INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $5,900...
BLOSSOM INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $5,900 $6,900 Accounts receivable 61,400 50,800 Short-term debt investments (available-for-sale) 35,000 17,800 Inventory 40,000 59,400 Prepaid rent 5,000 3,900 Equipment 155,200 129,000 Accumulated depreciation—equipment (35,000 ) (25,000 ) Copyrights 45,600 49,900 Total assets $313,100 $292,700 Accounts payable $46,300 $39,800 Income taxes payable 3,900 6,100 Salaries and wages payable 7,900 3,900 Short-term loans payable 8,000 10,100 Long-term loans payable 60,100 68,400 Common stock, $10 par 100,000...
Blossom Co. Balance Sheet (Partial) As of December 31, 2017 Cash $19,100 Accounts payable $28,400 Accounts...
Blossom Co. Balance Sheet (Partial) As of December 31, 2017 Cash $19,100 Accounts payable $28,400 Accounts receivable $38,200 Notes payable 14,000     Less: Allowance for doubtful accounts 2,100 36,100 Unearned revenue 2,800 Inventory 61,500 Total current liabilities $45,200 Prepaid expenses 6,100 Total current assets $122,800 The following errors in the corporation’s accounting have been discovered: 1. Keane collected $4,700 on December 20, 2017 as a down payment for services to be performed in January, 2018. The company’s controller recorded the amount...
SMC, Inc. Balance Sheet December 31, 2017 Assets Cash ......................................................................................................... $34,500 Accounts receivable ...................................................................
SMC, Inc. Balance Sheet December 31, 2017 Assets Cash ......................................................................................................... $34,500 Accounts receivable ................................................................................ 25,000 Inventory .................................................................................................. 10,000 Supplies ................................................................................................... 200 Total assets.............................................................................................. $69,700 Liabilities and Stockholders’ Equity Liabilities: Accounts payable ............................................................................. $12,000 Salaries payable ............................................................................... 1,000 Income taxes payable ...................................................................... 3,675 Total liabilities.......................................................................................... $16,675 Stockholders’ equity: Capital stock (10,000 shares outstanding).................................... $25,000 Retained earnings ............................................................................ 28,025 Total stockholders’ equity ....................................................................... 53,025 Total liabilities and stockholders’ equity................................................ $69,700 SMC, Inc. Income Statement For the Year Ended December31,2017 Sales revenue .............................................................................................
The Balance Sheet of the Illini as of 12/31/20X0: Assets Current Assets: Cash 1,500,000 Accounts receivable,...
The Balance Sheet of the Illini as of 12/31/20X0: Assets Current Assets: Cash 1,500,000 Accounts receivable, net 18,000 Inventory 50,000 Total current assets 1,568,000 Equipment 90,000 Goodwill 20,000 Total assets $1,678,000 Liabilities and shareholders' equity Shareholders' equity: Common stock, 20,000 shares outstanding, $1 par 20,000 Additional paid-in capital 280,000 Retained earnings 1,378,000 Total shareholders' equity 1,678,000 Total liabilities and shareholders' equity 1,678,000 Note that all additional paid-in capital (APIC) sub accounts (e.g., APIC-options and APIC-treasury stock), if any, are tracked...
The Balance Sheet of the Illini as of 12/31/20X0: Assets Current Assets: Cash 1,500,000 Accounts receivable,...
The Balance Sheet of the Illini as of 12/31/20X0: Assets Current Assets: Cash 1,500,000 Accounts receivable, net 18,000 Inventory 50,000 Total current assets 1,568,000 Equipment 90,000 Goodwill 20,000 Total assets $1,678,000 Liabilities and shareholders' equity Shareholders' equity: Common stock, 20,000 shares outstanding, $1 par 20,000 Additional paid-in capital 280,000 Retained earnings 1,378,000 Total shareholders' equity 1,678,000 Total liabilities and shareholders' equity 1,678,000 Note that all additional paid-in capital (APIC) sub accounts (e.g., APIC-options and APIC-treasury stock), if any, are tracked...
A comparative balance sheet for Harrison Co. appear below: Assets 12/31/2019 12/31/2018 Cash $34,000 $11,000 Accounts...
A comparative balance sheet for Harrison Co. appear below: Assets 12/31/2019 12/31/2018 Cash $34,000 $11,000 Accounts receivable 18,000 13,000 Inventory 25,000 17,000 Prepaid expenses 6,000 9,000 Long-term investments -0- 17,000 Equipment 60,000 33,000 Accumulated depreciation-equipment (20,000) (15,000) Total assets $123,000 $85,000 Liabilities and Stockholders' Equity Accounts payable $17,000 $7,000 Bonds payable 36,000 45,000 Common stock 40,000 23,000 Retained earnings 30,000 10,000 Total liabilities and equity $123,000 $85,000 Additional information: Net income for the year ending December 31, 2019 was $35,000....
balance sheet 12/31/2014 12/31/2015 Assets Current Assets Cash in bank $     57,000 $    65,000 Accounts receivable         75,00
balance sheet 12/31/2014 12/31/2015 Assets Current Assets Cash in bank $     57,000 $    65,000 Accounts receivable         75,000        82,000 Inventory         66,000        75,000 Prepaid expenses           6,000          8,000 Total Current Assets $   204,000 $   230,000 Fixed Assets Machinery & equipment $     25,200 $    18,000 Total Fixed Assets (net of depreciation) $     25,200 $    18,000 TOTAL Assets $   229,200 $   248,000 Liabilities and Equity Current Liabilities Accounts payable $     89,000 $    90,000 Total Current Liabilities $     89,000 $    90,000 Long-term Debt Bank loans payable $     62,000 $    50,000 Total Long-term Debt $     62,000 $    50,000 Total Liabilities $   151,000 $   140,000 Owners' Equity         78,200...
12/31/17 Balance Sheet Cash $17,000                                     Account
12/31/17 Balance Sheet Cash $17,000                                     Accounts Receivable                           $12,000                                     Prepaid Insurance                                $5,000                                     Inventory                                             $15,000 Total $49,000                                     Equipment                                           $100,000                                     Accumulated Depreciation                  $(20,000) Total $80,000                                     Total Assets                                        $129,000                                     Accounts Payable                                $9,000                                     Income Taxes Payable $3,000                                     Total Liabilities                                    $12,000                                     Common Stock                                   $100,000                                     Retained Earnings                               $17,000                                     Total Equity                                         $117,000                                     Total Liabilities & Equity                    $129,000 Additional Information: Sales for 2018 are expected to be $200,000. Accounts Receivable turnover is expected to be 12...
ABC CORP BALANCE SHEET December 31, 2010 Cash $ 100 Marketable Securities 0 Accounts Receivables 2,000...
ABC CORP BALANCE SHEET December 31, 2010 Cash $ 100 Marketable Securities 0 Accounts Receivables 2,000 Inventory 140 Fixed Assets ( net ) 2,000 Total Assets ===== Accounts Payable $ 2,380 Notes Payable 0 Retained earnings ? Common Stock 1,400 Total of Both Liabilities & Equity ===== For the year ended 12/31/10 ABC CORP generated Sales of $12,000 and Net Income of $120. The net profit margin this year is considered normal by ABC CORP. Cost of Goods Sold was...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT