LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 Gross sales $ 21,400 $ 16,800 Sales returns and allowances 1,000 100 Net sales $ 20,400 $ 16,700 Cost of merchandise (goods) sold 11,400 8,400 Gross profit $ 9,000 $ 8,300 Operating expenses: Depreciation $ 940 $ 720 Selling and administrative 4,000 3,200 Research 790 620 Miscellaneous 600 420 Total operating expenses $ 6,330 $ 4,960 Income before interest and taxes $ 2,670 $ 3,340 Interest expense 800 620 Income before taxes $ 1,870 $ 2,720 Provision for taxes 748 1,088 Net income $ 1,122 $ 1,632 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 Assets Current assets: Cash $ 13,200 $ 10,200 Accounts receivable 17,700 13,700 Merchandise inventory 9,700 15,200 Prepaid expenses 25,200 11,200 Total current assets $ 65,800 $ 50,300 Plant and equipment: Building (net) $ 15,700 $ 12,200 Land 14,700 10,200 Total plant and equipment $ 30,400 $ 22,400 Total assets $ 96,200 $ 72,700 Liabilities Current liabilities: Accounts payable $ 14,200 $ 8,200 Salaries payable 8,200 6,200 Total current liabilities $ 22,400 $ 14,400 Long-term liabilities: Mortgage note payable 23,200 21,700 Total liabilities $ 45,600 $ 36,100 Stockholders’ Equity Common stock $ 22,200 $ 22,100 Retained earnings 28,400 14,500 Total stockholders’ equity $ 50,600 $ 36,600 Total liabilities and stockholders’ equity $ 96,200 $ 72,700 Calculate the average day’s collection. (Use 360 days a year. Do not round intermediate calculations. Round your answers to the nearest hundredth.)
LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 Gross sales $ 21,400 $ 16,800 Sales returns and allowances 1,000 100 Net sales $ 20,400 $ 16,700 Cost of merchandise (goods) sold 11,400 8,400 Gross profit $ 9,000 $ 8,300 Operating expenses: Depreciation $ 940 $ 720 Selling and administrative 4,000 3,200 Research 790 620 Miscellaneous 600 420 Total operating expenses $ 6,330 $ 4,960 Income before interest and taxes $ 2,670 $ 3,340 Interest expense 800 620 Income before taxes $ 1,870 $ 2,720 Provision for taxes 748 1,088 Net income $ 1,122 $ 1,632 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 Assets Current assets: Cash $ 13,200 $ 10,200 Accounts receivable 17,700 13,700 Merchandise inventory 9,700 15,200 Prepaid expenses 25,200 11,200 Total current assets $ 65,800 $ 50,300 Plant and equipment: Building (net) $ 15,700 $ 12,200 Land 14,700 10,200 Total plant and equipment $ 30,400 $ 22,400 Total assets $ 96,200 $ 72,700 Liabilities Current liabilities: Accounts payable $ 14,200 $ 8,200 Salaries payable 8,200 6,200 Total current liabilities $ 22,400 $ 14,400 Long-term liabilities: Mortgage note payable 23,200 21,700 Total liabilities $ 45,600 $ 36,100 Stockholders’ Equity Common stock $ 22,200 $ 22,100 Retained earnings 28,400 14,500 Total stockholders’ equity $ 50,600 $ 36,600 Total liabilities and stockholders’ equity $ 96,200 $ 72,700 Calculate the average day’s collection. (Use 360 days a year. Do not round intermediate calculations. Round your answers to the nearest hundredth.)
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.8MCP
Related questions
Question
LOGIC COMPANY | |||||||
Comparative Income Statement | |||||||
For Years Ended December 31, 2017 and 2018 | |||||||
2018 | 2017 | ||||||
Gross sales | $ | 21,400 | $ | 16,800 | |||
Sales returns and allowances | 1,000 | 100 | |||||
Net sales | $ | 20,400 | $ | 16,700 | |||
Cost of merchandise (goods) sold | 11,400 | 8,400 | |||||
Gross profit | $ | 9,000 | $ | 8,300 | |||
Operating expenses: | |||||||
Depreciation | $ | 940 | $ | 720 | |||
Selling and administrative | 4,000 | 3,200 | |||||
Research | 790 | 620 | |||||
Miscellaneous | 600 | 420 | |||||
Total operating expenses | $ | 6,330 | $ | 4,960 | |||
Income before interest and taxes | $ | 2,670 | $ | 3,340 | |||
Interest expense | 800 | 620 | |||||
Income before taxes | $ | 1,870 | $ | 2,720 | |||
Provision for taxes | 748 | 1,088 | |||||
Net income | $ | 1,122 | $ | 1,632 | |||
LOGIC COMPANY | |||||||
Comparative Balance Sheet | |||||||
December 31, 2017 and 2018 | |||||||
2018 | 2017 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash | $ | 13,200 | $ | 10,200 | |||
Accounts receivable | 17,700 | 13,700 | |||||
Merchandise inventory | 9,700 | 15,200 | |||||
Prepaid expenses | 25,200 | 11,200 | |||||
Total current assets | $ | 65,800 | $ | 50,300 | |||
Plant and equipment: | |||||||
Building (net) | $ | 15,700 | $ | 12,200 | |||
Land | 14,700 | 10,200 | |||||
Total plant and equipment | $ | 30,400 | $ | 22,400 | |||
Total assets | $ | 96,200 | $ | 72,700 | |||
Liabilities | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 14,200 | $ | 8,200 | |||
Salaries payable | 8,200 | 6,200 | |||||
Total current liabilities | $ | 22,400 | $ | 14,400 | |||
Long-term liabilities: | |||||||
Mortgage note payable | 23,200 | 21,700 | |||||
Total liabilities | $ | 45,600 | $ | 36,100 | |||
Common stock | $ | 22,200 | $ | 22,100 | |||
Retained earnings | 28,400 | 14,500 | |||||
Total stockholders’ equity | $ | 50,600 | $ | 36,600 | |||
Total liabilities and stockholders’ equity | $ | 96,200 | $ | 72,700 | |||
Calculate the average day’s collection. (Use 360 days a year. Do not round intermediate calculations. Round your answers to the nearest hundredth.)
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