Question
In: Accounting
information for Ramirez Corp. is given below: Ramirez Corp. Balance Sheet December 31, 2018 Assets Equities...
information for Ramirez Corp. is given below:
Ramirez Corp. Balance Sheet December 31, 2018
|
Assets |
Equities |
||
|
Cash |
$ 300,000 |
Accounts payable |
$ 630,000 |
|
Accounts receivable (net) |
1,950,000 |
Income taxes payable |
189,000 |
|
Inventories |
2,439,000 |
Miscellaneous accrued payables |
225,000 |
|
Bonds payable (8%, due 2020) |
1,875,000 |
||
|
Plant and equipment, net of depreciation |
1,983,000 |
||
|
Patents |
261,000 |
Preferred stock ($100 par, 6% cumulative nonparticipating) |
750,000 |
|
Other intangible assets |
75,000 |
Common stock (no par, 60,000 shares authorized, issued and outstanding) |
1,125,000 |
|
Total Assets |
7,008,000 |
Retained Earnings |
2,439,000 |
|
Treasury stock—1,500 shares of preferred |
(225,000) |
||
|
Total Equities |
7,008,000 |
Ramirez Corp. Income Statement
Year Ended December 31, 2018
|
Net sales |
$ 9,000,000 |
|
Cost of goods sold |
6,000,000 |
|
Gross profit |
3,000,000 |
|
Operating expenses (including bond interest expense) |
1,500,000 |
|
Income before income taxes |
1,500,000 |
|
Income tax |
450,000 |
|
Net income |
S 1,050,000 |
Additional information:
There are no preferred dividends in arrears, the balances in the Accounts Receivable and Inventory accounts are unchanged from January 1, 2018, and there were no changes in the Bonds Payable, Preferred Stock, or Common Stock accounts during 2018. Assume that preferred dividends for the current year have not been declared.
At December 31, 2018, the current ratio was
a. 2,250 / 630.
b. 6,675 / 819.
c. 4,689 / 819.
d. 4,689 / 1,044
The number of times interest was earned during 2018 was
a. 1,50 / 150.
b. 1,500 / 150.
c. 1,650 / 150.
d. 1,350 / 150.
At December 31, 2018, the book value per share of common stock was
a. $55.66.
b. $58.16.
c. $59.40.
d. $58.65.
The rate of return for 2018 based on the year-end common stockholders' equity was
a. 1,050 / 3,519.
b. 1,050 / 3,564.
c. 1,005 / 3,519.
d. 1,005 / 3,564.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Presented below is the balance sheet for HHD, Inc., at December 31, 2018. Current assets $...
Presented below is the balance sheet for HHD, Inc., at December
31, 2018.
Current assets
$
656,000
Investments
542,000
Property, plant, and
equipment
2,392,000
Intangible assets
228,000
Total assets
$
3,818,000
Current liabilities
$
456,000
Long-term liabilities
722,000
Shareholders' equity
2,640,000
Total liabilities and
shareholders' equity
$
3,818,000
The captions shown in the summarized statement above include the
following:
Current assets: cash, $164,000; accounts receivable, $214,000;
inventories, $239,000; and prepaid insurance, $39,000.
Investments: investments in common stock, short term, $104,000,...
Presented below is the balance sheet for HHD, Inc., at December 31, 2018. Current assets $...
Presented below is the balance sheet for HHD, Inc., at December
31, 2018.
Current assets
$
656,000
Investments
542,000
Property, plant, and
equipment
2,392,000
Intangible assets
228,000
Total assets
$
3,818,000
Current liabilities
$
456,000
Long-term liabilities
722,000
Shareholders' equity
2,640,000
Total liabilities and
shareholders' equity
$
3,818,000
The captions shown in the summarized statement above include the
following:
Current assets: cash, $164,000; accounts receivable, $214,000;
inventories, $239,000; and prepaid insurance, $39,000.
Investments: investments in common stock, short term, $104,000,...
Ayayai Corp.’s balance sheet at December 31, 2021, is presented below. AYAYAI CORP. Balance Sheet December...
Ayayai Corp.’s balance sheet at December 31, 2021, is presented
below.
AYAYAI CORP.
Balance Sheet
December 31, 2021
Cash
$68,880
Accounts payable
$71,680
Accounts receivable
127,400
Common stock ($10 par)
224,000
Allowance for doubtful accounts
(4,200
)
Retained earnings
356,720
Supplies
12,320
Land
112,000
Buildings
397,600
Accumulated depreciation—buildings
(61,600
)
$652,400
$652,400
During 2022, the following transactions occurred.
1.
On January 1, Ayayai issued 3,360 shares of $40 par, 7%
preferred stock for $137,760.
2.
On January 1, Ayayai also...
Marigold Corp.’s balance sheet at December 31, 2021, is presented below. MARIGOLD CORP. Balance Sheet December...
Marigold Corp.’s balance sheet at December 31, 2021, is
presented below.
MARIGOLD CORP.
Balance Sheet
December 31, 2021
Cash
$31,980
Accounts payable
$33,280
Accounts receivable
59,150
Common stock ($10 par)
104,000
Allowance for doubtful accounts
(1,950
)
Retained earnings
165,620
Supplies
5,720
Land
52,000
Buildings
184,600
Accumulated depreciation—buildings
(28,600
)
$302,900
$302,900
During 2022, the following transactions occurred.
1.
On January 1, Marigold issued 1,560 shares of $40 par, 7%
preferred stock for $63,960.
2.
On January 1, Marigold also...
Sheffield Corp.’s balance sheet at December 31, 2021, is presented below. SHEFFIELD CORP. Balance Sheet December...
Sheffield Corp.’s balance sheet at December 31, 2021, is
presented below. SHEFFIELD CORP. Balance Sheet December 31, 2021
Cash $51,660 Accounts payable $53,760 Accounts receivable 95,550
Common stock ($10 par) 168,000 Allowance for doubtful accounts
(3,150 ) Retained earnings 267,540 Supplies 9,240 Land 84,000
Buildings 298,200 Accumulated depreciation—buildings (46,200 )
$489,300 $489,300 During 2022, the following transactions occurred.
1. On January 1, Sheffield issued 2,520 shares of $40 par, 7%
preferred stock for $103,320. 2. On January 1, Sheffield also...
Sarasota Corp.’s balance sheet at December 31, 2021, is presented below. SARASOTA CORP. Balance Sheet December...
Sarasota Corp.’s balance sheet at December 31, 2021, is
presented below. SARASOTA CORP. Balance Sheet December 31, 2021
Cash $49,200 Accounts payable $51,200 Accounts receivable 91,000
Common stock ($10 par) 160,000 Allowance for doubtful accounts
(3,000 ) Retained earnings 254,800 Supplies 8,800 Land 80,000
Buildings 284,000 Accumulated depreciation—buildings (44,000 )
$466,000 $466,000 During 2022, the following transactions occurred.
1. On January 1, Sarasota issued 2,400 shares of $40 par, 7%
preferred stock for $98,400. 2. On January 1, Sarasota also...
Sheffield Corp.’s balance sheet at December 31, 2021, is presented below. SHEFFIELD CORP. Balance Sheet December...
Sheffield Corp.’s balance sheet at December 31, 2021, is
presented below. SHEFFIELD CORP. Balance Sheet December 31, 2021
Cash $51,660 Accounts payable $53,760 Accounts receivable 95,550
Common stock ($10 par) 168,000 Allowance for doubtful accounts
(3,150 ) Retained earnings 267,540 Supplies 9,240 Land 84,000
Buildings 298,200 Accumulated depreciation—buildings (46,200 )
$489,300 $489,300 During 2022, the following transactions occurred.
1. On January 1, Sheffield issued 2,520 shares of $40 par, 7%
preferred stock for $103,320. 2. On January 1, Sheffield also...
ABC Corp. Balance Sheet As of December 31, 2018 Assets Liability Cash $6,000 Accounts Payable $3,000...
ABC Corp. Balance Sheet As of December 31,
2018
Assets
Liability
Cash
$6,000
Accounts Payable
$3,000
Accounts Receivable
$4,000
Stockholders' Equity
Common Stock
$3,000
Retained Earnings
$4,000
Total Liability and Stockholders' Equity
Total Assets
$10,000
$10,000
1. On January 1st, 2019, ABC Corp bought an equipment for
$2,000. The equipment has a useful life of 5 years and has a
salvage value of $500. The company uses double-declining
depreciation method.
2. On March 1 st, 2019, ABC Corp received $2,400...
ABC Corp. Balance Sheet As of December 31, 2018 Assets Liability Cash $6,000 Accounts Payable $3,000...
ABC Corp. Balance Sheet As of December 31,
2018
Assets
Liability
Cash
$6,000
Accounts Payable
$3,000
Accounts Receivable
$4,000
Stockholders' Equity
Common Stock
$3,000
Retained Earnings
$4,000
Total Liability and Stockholders' Equity
Total Assets
$10,000
$10,000
On January 1st, 2019, ABC Corp bought an equipment
for $2,000. The equipment has a useful life of 5 years and has a
salvage value of $500.
On May 1st, 2018, ABC Corp received $1,200 cash for
services to be performed in the future....
The Traverse Recreation Company's balance sheet as of December 31, 2019 is given below: Assets Current...
The Traverse Recreation Company's balance sheet as of December 31,
2019 is given below:
Assets
Current Assets:
Cash
$
46,200
Accounts Receivable (net)
260,000
Raw Materials Inventory (4,500 yards)
11,250
Finished Goods Inventory (1,500 units)
32,250
Total current assets
$ 349,700
Property and Equipment:
Buildings and Equipment
900,000
Accumulated Depreciation
(292,000)
Plant and Equipment (net)
608,000
Total Assets
$ 957,700
Liabilities and Stockholder's Equity
Current Liabilities:
...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Parallel Arrays This question is in MindTap Cengage Summary In this lab, you use what you...
- 5. You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent is Bella...
- JAVA Write a test program that prompts the user to enter a series of integers and...
- (2) Cite an example on how organizations like Google, Facebook, Youtube etc collect data for image...
- The legal landscape is perpetually changing. Psychologists must remain abreast of these changes to avoid potentially...
- We are evaluating a project that costs $1.68 million, has a six-year life, and has no...
- In C++ Having call-by-reference allows one to use storeback parameters, i.e., parameters whose values are transmitted...
ADVERTISEMENT