What is XYZ's current ratio on December 31, 2021? -What is XYZ's Accounts Receivables Turnover for 2021? (assume Accounts Receivable, net was $500,000 on December 31, 2020) -What is XYZ's Asset Turnover for 2021? (assume total assets were $14 million on December 31, 2020) Account Balance Data       Debit Credit Cash 217,650   Accounts Receivable 545,000   Interest Receivable 1,200   Allowance for Doubtful Accounts   8,450 Merchandise Inventory 778,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question

-What is XYZ's current ratio on December 31, 2021?

-What is XYZ's Accounts Receivables Turnover for 2021? (assume Accounts Receivable, net was $500,000 on December 31, 2020)

-What is XYZ's Asset Turnover for 2021? (assume total assets were $14 million on December 31, 2020)

Account Balance Data    
  Debit Credit
Cash 217,650  
Accounts Receivable 545,000  
Interest Receivable 1,200  
Allowance for Doubtful Accounts   8,450
Merchandise Inventory 778,000  
Prepaid Insurance 30,000  
Notes Receivable    
Land 2,000,000  
Office Building 4,000,000  
Office Equipment 320,000  
Store Building 9,000,000  
Store Equipment 3,560,000  
Accumulated Depreciation - office building and equipment   1,580,000
Accumulated Depreciation - store building and equipment   4,126,000
Goodwill 700,000  
     

 

A
8
XYZ Co.
9
Balance Sheet
10
December 31, 2021
11
12
Assets
13 Current Assets:
14
Cash
205,150
15
Accounts Receivable
491,870
16
Interest Receivable
1,331
17
Merchandise Inventory
778,000
18
Prepaid Insurance
20,000
19
Total Current Assets
1,496,351
20 Non-Current Assets:
21
Land
2,000,000
4,000,000
Office Building
Office Equipment
Accumulated depreciation-office buildings and equip
22
23
320,000
(1,620,000)
24
25
Store Building
9,000,000
26
Store Equipment
3,560,000
(4,216,000)
27
Accumulated depreciation-store buildings and
28
Goodwill
700,000
29
Total Long-Term Assets
13,744,000
30 Total Assets
15,240,351
31
32
Liabilities
33 Current Liabilities:
Accounts Payable
Income Tax Payable
34
194,300
44,000
90,000
35
36
Unearned Revenue
37
Total Current Liabilities
328,300
38 Non-Current Liabilities:
39
Bonds Payable
518,000
40 Total Liabilities
846,300
41
42
Stockholders' Equity
43
Common Stock
1,700,000
44
Preferred 5% Stock
1,280,000
Paid-In Capital in Excess of Par - Common Stock
Paid-In Capital in Excess of Par - Preferred Stock
Treasury Stock
Paid-In Capital - Treasury
Retained Earnings
50 Total Stockholders' Equity
51 Total Liabilities and Stockholders' Equity
45
736,800
46
170,000
47
(178,200)
13,000
48
49
10,672,451
14,394,051
15,240,351
Transcribed Image Text:A 8 XYZ Co. 9 Balance Sheet 10 December 31, 2021 11 12 Assets 13 Current Assets: 14 Cash 205,150 15 Accounts Receivable 491,870 16 Interest Receivable 1,331 17 Merchandise Inventory 778,000 18 Prepaid Insurance 20,000 19 Total Current Assets 1,496,351 20 Non-Current Assets: 21 Land 2,000,000 4,000,000 Office Building Office Equipment Accumulated depreciation-office buildings and equip 22 23 320,000 (1,620,000) 24 25 Store Building 9,000,000 26 Store Equipment 3,560,000 (4,216,000) 27 Accumulated depreciation-store buildings and 28 Goodwill 700,000 29 Total Long-Term Assets 13,744,000 30 Total Assets 15,240,351 31 32 Liabilities 33 Current Liabilities: Accounts Payable Income Tax Payable 34 194,300 44,000 90,000 35 36 Unearned Revenue 37 Total Current Liabilities 328,300 38 Non-Current Liabilities: 39 Bonds Payable 518,000 40 Total Liabilities 846,300 41 42 Stockholders' Equity 43 Common Stock 1,700,000 44 Preferred 5% Stock 1,280,000 Paid-In Capital in Excess of Par - Common Stock Paid-In Capital in Excess of Par - Preferred Stock Treasury Stock Paid-In Capital - Treasury Retained Earnings 50 Total Stockholders' Equity 51 Total Liabilities and Stockholders' Equity 45 736,800 46 170,000 47 (178,200) 13,000 48 49 10,672,451 14,394,051 15,240,351
A.
B
D
E
8
XYZ Co.
Income Statement
10
For the year ending December 31, 2021
11
12 Sales
13 Cost of Goods Sold
Gross Profit
5,335,000
3,500,000
1,835,000
14
enter a formula here!
16 Selling Expenses:
17 Sales Salaries Expense
385,000
18
Sales Commissions
185,000
Advertising Expense
Miscellaneous Selling Expense
Total Selling Expense
19
150,000
20
14,000
21
734,000
enter a formula here!
23 General & Administrative Expenses:
24 Office Salaries Expense
Office Supplies Expense
Office Rent Expense
Insurance Expense
Delivery Expense
Store Supplies Expense
Bad Debt Expense
Depreciation Expense - Office Building and Equipment
Depreciation Expense - Store Building and Equipment
Miscellaneous Administrative Expense
Total General & Administrative Expense
170,000
10,000
50,000
10,000
30,000
21,000
44,680
70,000
25
26
27
28
29
30
31
32
190,000
33
7,500
34
35
603,180
enter a formula here!
36 Income from Operations
37
497,820
enter a formula here!
38 Other Income / Expense:
39 Interest Revenue
40 Interest Expense
30,131
(32,500)
41
(2,369)
enter a formula here!
42
43 Net income before income tax
495,451
enter a formula here!
44
45
46 Net Income after tax
140,500
354,951
enter a formula here!
Transcribed Image Text:A. B D E 8 XYZ Co. Income Statement 10 For the year ending December 31, 2021 11 12 Sales 13 Cost of Goods Sold Gross Profit 5,335,000 3,500,000 1,835,000 14 enter a formula here! 16 Selling Expenses: 17 Sales Salaries Expense 385,000 18 Sales Commissions 185,000 Advertising Expense Miscellaneous Selling Expense Total Selling Expense 19 150,000 20 14,000 21 734,000 enter a formula here! 23 General & Administrative Expenses: 24 Office Salaries Expense Office Supplies Expense Office Rent Expense Insurance Expense Delivery Expense Store Supplies Expense Bad Debt Expense Depreciation Expense - Office Building and Equipment Depreciation Expense - Store Building and Equipment Miscellaneous Administrative Expense Total General & Administrative Expense 170,000 10,000 50,000 10,000 30,000 21,000 44,680 70,000 25 26 27 28 29 30 31 32 190,000 33 7,500 34 35 603,180 enter a formula here! 36 Income from Operations 37 497,820 enter a formula here! 38 Other Income / Expense: 39 Interest Revenue 40 Interest Expense 30,131 (32,500) 41 (2,369) enter a formula here! 42 43 Net income before income tax 495,451 enter a formula here! 44 45 46 Net Income after tax 140,500 354,951 enter a formula here!
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Receivables Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education