FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
19th Edition
ISBN: 9781119493624
Author: Kimmel
Publisher: WILEY
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The following selected account balances were taken from ABC Company'sgeneral ledgers for 2025:January 1, 2025 December 31, 2025 Accounts payable 49,000 53,000 Cash 35,000 38,000Common stock 46,000 76,000Land 27,000 64,000 Notes payable 45,000 40,000Retained earnings ? 29,000The following information was taken from ABC Company's 2025 incomestatement:Total revenues 500,000Total expenses <430,000>Net income 70,000The following information was taken from ABC Company's 2025 cashflow statement:Net cash flow from operating activities 93,000Net cash flow from investing activities <60,000>Net cash flow from financing activities <30,000>Net change in cash 3,000Calculate the balance in the retained earnings account at January 1, 2025.
The following items are reported on a company's balance sheet:
Cash
$227,700
Marketable securities
109,000
Accounts receivable
235,700
Inventory
197,500
Accounts payable
293,700
Round your answers to two decimal places.
a. Determine the current ratio.
b. Determine the quick ratio.
Complete the 20xx balance sheet for ABD Industries using the information that follows it.
Balance Sheet
Assets
Cash
32,700
Marketable Securities
25,000
Accounts receivable
a
Inventories
b
Total current assets
Net fixed assets
e
Total assets
Liabilities and Stockholders' Equity
Accounts payable
120,000
Notes payable
Accruals
20,000
Total current liabilities
Long-term debt
i
Total liabilities
h
Stockholders' equity
600,000
Total liabilities and stockholders' equity
The following financial data are also available:
а.
Sales totaled PhP1,800,000
b.
The gross profit margin was 25%.
С.
Inventory turnover was 6.0.
d.
There are 365 days in the year.
е.
The average collection period was 40 days.
f.
The current ratio was 1.60
g.
The total asset turnover ratio was 1.20.
h.
The debt ratio was 60%
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