ACCT.PRINCIPLES (LL)
14th Edition
ISBN: 9781119707110
Author: Weygandt
Publisher: WILEY
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Bargain Deal, Inc., is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the
fiscal year ended January 28, 2017, are shown below.
Current assets:
Cash and cash equivalents
Short-term investments
Accounts receivable (net)
Inventory
Other current assets
Total current assets.
Long-term assets
Total assets
Bargain Deal, Inc.
Balance Sheet
At January 28, 2017
($ in millions)
Assets
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable
Other current liabilities
Total current liabilities
Long-term liabilities
Shareholders' equity
Total liabilities and shareholders' equity
Bargain Deal, Inc.
Income Statement
For the Year Ended January 28, 2017
($ in millions)
Revenues
Costs and expenses
Operating income
Other income (expense)*
Income before income taxes
Income tax expense
Net income
Current ratio
1-a.
1-b. Acid-test ratio
1-c. Debt to equity ratio
1-d.
$39,618
38,171
1,447
Times interest earned ratio
$
(83)
1,364…
The following is summary of information presented on the financial statements of a company on December 31, 2019.
Account
2019
2018
Current Assets
$ 69 comma 000$69,000
$ 53 comma 000$53,000
Accounts Receivable
83 comma 00083,000
80 comma 00080,000
Merchandise Inventory
53 comma 00053,000
41 comma 00041,000
Current Liabilities
77 comma 00077,000
49 comma 00049,000
Longminus−term
Liabilities
30 comma 00030,000
52 comma 00052,000
Common Stock
54 comma 00054,000
44 comma 00044,000
Retained Earnings
44 comma 00044,000
29 comma 00029,000
Net Sales Revenue
$ 527 comma 000$527,000
$ 508 comma 000$508,000
Cost of Goods Sold
405 comma 000405,000
396 comma 000396,000
Gross Profit
$ 122 comma 000$122,000
$ 112 comma 000$112,000
Selling Expenses
45 comma 00045,000
58 comma 00058,000
Net Income Before Income Tax Expense
$ 77 comma 000$77,000
$ 54 comma 000$54,000
Income Tax…
Required information
[The following information applies to the questions displayed below.] Simon Company’s year-end balance sheets follow.
At December 31
2017
2016
2015
Assets
Cash
$
31,800
$
35,625
$
37,800
Accounts receivable, net
89,500
62,500
50,200
Merchandise inventory
112,500
82,500
54,000
Prepaid expenses
10,700
9,375
5,000
Plant assets, net
278,500
255,000
230,500
Total assets
$
523,000
$
445,000
$
377,500
Liabilities and Equity
Accounts payable
$
129,900
$
75,250
$
51,250
Long-term notes payable secured bymortgages on plant assets
98,500
101,500
83,500
Common stock, $10 par value
163,500
163,500
163,500
Retained earnings
131,100
104,750
79,250
Total liabilities and equity
$
523,000
$
445,000
$
377,500
The company’s income statements for the years ended December 31, 2017 and 2016, follow.…
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