FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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LOGIC COMPANY
Comparative Income Statement
For Years Ended December 31, 2017 and 2018
2018
2017
$20,600 $16,200
800
Gross sales
100
Sales returns and allowances
$19,800 $16,100
11,600
$ 8,200 $ 7,500
Net sales
8,600
Cost of merchandise (goods) sold
Gross profit
Operating expenses:
Depreciation
Selling and administrative
Research
$
3,400
860 $
680
2,800
710
580
Miscellaneous
520
380
$ 5,490 $ 4,440
$ 2,710 $ 3,060
Total operating expenses
Income before interest and taxes
Interest expense
720
580
$ 1,990 $ 2,480
796
Income before taxes
Provision for taxes
992
Net income
$ 1,194 $ 1,488
LOGIC COMPANY
Comparative Balance Sheet
December 31, 2017 and 2018
2018
2017
Assets
Current assets:
Cash
$12,800 $ 9,800
13,300
14,800
10.800
Accounts receivable
17,300
9,300
Merchandise inventory
Prepaid expenses
24.800
Prou
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Transcribed Image Text:LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 $20,600 $16,200 800 Gross sales 100 Sales returns and allowances $19,800 $16,100 11,600 $ 8,200 $ 7,500 Net sales 8,600 Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative Research $ 3,400 860 $ 680 2,800 710 580 Miscellaneous 520 380 $ 5,490 $ 4,440 $ 2,710 $ 3,060 Total operating expenses Income before interest and taxes Interest expense 720 580 $ 1,990 $ 2,480 796 Income before taxes Provision for taxes 992 Net income $ 1,194 $ 1,488 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 Assets Current assets: Cash $12,800 $ 9,800 13,300 14,800 10.800 Accounts receivable 17,300 9,300 Merchandise inventory Prepaid expenses 24.800 Prou
2018
2017
Assets
Current assets:
$12,800 $ 9,800
17,300
9,300
Cash
Accounts receivable
Merchandise inventory
Prepaid expenses
13,300
14,800
10,800
24,800
$64,200 $48,700
Total current assets
Plant and equipment:
Building (net)
$15,300 $11,800
14,300
9,800
Land
Total plant and equipment
$29,600 $21,600
Total assets
$93,800 $70,300
Liabilities
Current liabilities:
Accounts payable
Salaries payable
Total current liabilities
$13,800 $ 7,800
7,800
$21,600 $13,600
5,800
Long-term liabilities:
Mortgage note payable
Total liabilities
22,700
$44,300 $35,000
21,400
Stockholders' Equity
$21,800 $21,800
27,700
$49,500 $35,300
$93,800 $70,300
Common stock
Retained earnings
13,500
Total stockholders' equity
Total liabilities and stockholders' equity
Calculate the acid test ratio. (Round your answers to the nearest hundredth.)
2018
2017
Acid test ratio
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Transcribed Image Text:2018 2017 Assets Current assets: $12,800 $ 9,800 17,300 9,300 Cash Accounts receivable Merchandise inventory Prepaid expenses 13,300 14,800 10,800 24,800 $64,200 $48,700 Total current assets Plant and equipment: Building (net) $15,300 $11,800 14,300 9,800 Land Total plant and equipment $29,600 $21,600 Total assets $93,800 $70,300 Liabilities Current liabilities: Accounts payable Salaries payable Total current liabilities $13,800 $ 7,800 7,800 $21,600 $13,600 5,800 Long-term liabilities: Mortgage note payable Total liabilities 22,700 $44,300 $35,000 21,400 Stockholders' Equity $21,800 $21,800 27,700 $49,500 $35,300 $93,800 $70,300 Common stock Retained earnings 13,500 Total stockholders' equity Total liabilities and stockholders' equity Calculate the acid test ratio. (Round your answers to the nearest hundredth.) 2018 2017 Acid test ratio
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