The December 31, Year 4, balance sheet for Fanning Corporation is presented here. These are the only accounts on Fanning's balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information: Assets Cash FANNING CORPORATION Balance Sheet As of December 31, Year 4 Accounts receivable (net) Inventory Property, plant, and equipment (net) $ 30,000 ? ? 290,000 Liabilities and Stockholders' Equity Accounts payable (trade) Income taxes payable (current) Long-term debt Common stock Retained earnings $ 440,000 $ ? 30,000 ? 296,000 ? $ ? Additional Information Current ratio (at year end) Total liabilities + Total stockholders' equity Gross margin percentage Inventory turnover (Cost of goods sold Ending inventory) Gross margin for Year 4 Required a. Compute the balance in trade accounts payable as of December 31, Year 4. b. Compute the balance in retained earnings as of December 31, Year 4. 1.5 to 1.0 60% 40 % 11.2 times $ 350,000 c. Compute the balance in the inventory account as of December 31, Year 4. (Assume that the level of inventory did not change from last year.) Note: For all requirements, negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. a. Accounts payable b. Retained earnings c. Inventory
The December 31, Year 4, balance sheet for Fanning Corporation is presented here. These are the only accounts on Fanning's balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information: Assets Cash FANNING CORPORATION Balance Sheet As of December 31, Year 4 Accounts receivable (net) Inventory Property, plant, and equipment (net) $ 30,000 ? ? 290,000 Liabilities and Stockholders' Equity Accounts payable (trade) Income taxes payable (current) Long-term debt Common stock Retained earnings $ 440,000 $ ? 30,000 ? 296,000 ? $ ? Additional Information Current ratio (at year end) Total liabilities + Total stockholders' equity Gross margin percentage Inventory turnover (Cost of goods sold Ending inventory) Gross margin for Year 4 Required a. Compute the balance in trade accounts payable as of December 31, Year 4. b. Compute the balance in retained earnings as of December 31, Year 4. 1.5 to 1.0 60% 40 % 11.2 times $ 350,000 c. Compute the balance in the inventory account as of December 31, Year 4. (Assume that the level of inventory did not change from last year.) Note: For all requirements, negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. a. Accounts payable b. Retained earnings c. Inventory
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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Transcribed Image Text:The December 31, Year 4, balance sheet for Fanning Corporation is presented here. These are the only accounts on Fanning's balance
sheet. Amounts indicated by question marks (?) can be calculated using the following additional information:
Assets
Cash
FANNING CORPORATION
Balance Sheet
As of December 31, Year 4
Accounts receivable (net)
Inventory
Property, plant, and equipment (net)
$ 30,000
?
?
290,000
Liabilities and Stockholders' Equity
Accounts payable (trade)
Income taxes payable (current)
Long-term debt
Common stock
Retained earnings
$ 440,000
$ ?
30,000
?
296,000
?
$ ?
Additional Information
Current ratio (at year end)
Total liabilities + Total stockholders' equity
Gross margin percentage
Inventory turnover (Cost of goods sold Ending inventory)
Gross margin for Year 4
Required
a. Compute the balance in trade accounts payable as of December 31, Year 4.
b. Compute the balance in retained earnings as of December 31, Year 4.
1.5 to 1.0
60%
40 %
11.2 times
$ 350,000
c. Compute the balance in the inventory account as of December 31, Year 4. (Assume that the level of inventory did not change from
last year.)
Note: For all requirements, negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round
your answers to the nearest whole dollar amount.
a. Accounts payable
b. Retained earnings
c. Inventory
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