Question

​Use your knowledge of balance sheets and common-size statements to fill in the missing dollar amounts.

Assets

Cash

$25,000

3.4%

Accounts receivable

$125,000

Inventory

27.1%

Total current assets

$350,000

Gross plant and equipment

95.0%

Less: accumulated depreciation

$313,000

42.5%

Net plant and equipment

Total assets

$737,000

100.0%

Liabilities

Accounts payable

15.7%

Notes payable

$29,000

3.9%

Total current liabilities

Long-term debt

$248,000

33.6%

Total liabilities

$393,000

Common stock ($.01 par, 450,000 shares)

$4,500

0.6%

Paid-in capital

$220,500

29.9%

Retained earnings

Total stockholders’ equity

$344,000

46.7%

Total liabilities and equity

100.0%

Answer 1

Calculation:
Accounts Receivable % = Accounts Receivable / Total Assets * 100
Accounts Receivable % = $125,000 / $737,000 * 100
Accounts Receivable % = 17.0

Total Current Assets = Cash + Accounts Receivable + Inventory
$350,000 = $25,000 + $125,000 + Inventory
Inventory = $200,000

Total Current Assets % = Total Current Assets / Total Assets * 100
Total Current Assets % = $350,000 / $737,000 * 100
Total Current Assets % = 47.5

Gross Plant and Equipment % = Gross Plant and Equipment / Total Assets * 100
95.0 = Gross Plant and Equipment / $737,000 * 100
Gross Plant and Equipment = $700,150

Net Plant and Equipment = Gross Plant and Equipment – Accumulated Depreciation
Net Plant and Equipment = $700,150 - $313,000
Net Plant and Equipment = $387,150

Net Plant and Equipment % = Net Plant and Equipment / Total Assets * 100
Net Plant and Equipment % = $387,150 / $737,000* 100
Net Plant and Equipment % = 52.5

Total Assets = Total Liabilities and Equity
Total Liabilities and Equity = $737,000

Accounts Payable % = Accounts Payable / Total Liabilities and Equity * 100
15.7 = Accounts Payable / $737,000 * 100
Accounts Payable = $115,709

Total Current Liabilities = Accounts Payable + Notes Payable
Total Current Liabilities = $115,709 + $29,000
Total Current Liabilities = $144,709

Total Current Liabilities % = Total Current Liabilities / Total Liabilities and Equity * 100
Total Current Liabilities % = $144,709 / $737,000 * 100
Total Current Liabilities % = 19.6

Total Liabilities % = Total Liabilities / Total Liabilities and Equity * 100
Total Liabilities % = $393,000 / $737,000 * 100
Total Liabilities % = 53.3

Total Stockholders’ Equity = Common Stock + Paid-in Capital + Retained Earnings
$344,000 = $4,500 + $220,500 + Retained Earnings
Retained Earnings = $119,000

Retained Earnings % = Retained Earnings / Total Liabilities and Equity * 100
Retained Earnings % = $119,000 / $737,000 * 100
Retained Earnings % = 16.1