The December 31, 2019, balance sheet for Walton Corporation is presented here. These are the only accounts on Walton’
The December 31, 2019, balance sheet for Walton Corporation is presented here. These are the only accounts on Walton’
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 10P: Comprehensive: Balance Sheet from Statement of Cash Flows Mills Company prepared the following...
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Question
The December 31, 2019, balance sheet for Walton Corporation is presented here. These are the only accounts on Walton’s balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information:
WALTON CORPORATION Balance Sheet As of December 31, 2019 |
|||
Assets | |||
Cash | $ | 35,000 | |
Accounts receivable (net) | ? | ||
Inventory | ? | ||
Property, plant, and equipment (net) | 305,000 | ||
$ | 452,000 | ||
Liabilities and |
|||
Accounts payable (trade) | $ | ? | |
Income taxes payable (current) | 35,000 | ||
Long-term debt | ? | ||
Common stock | 311,000 | ||
Retained earnings | ? | ||
$ | ? | ||
Additional Information | |||
1.4 to 1.0 | |||
Total liabilities ÷ Total stockholders’ equity | 60 | % | |
Gross margin percentage | 40 | % | |
Inventory turnover (Cost of goods sold ÷ Ending inventory) | 10.5 | times | |
Gross margin for 2019 | $ | 350,000 | |
Required
- Compute the balance in trade accounts payable as of December 31, 2019.
- Compute the balance in retained earnings as of December 31, 2019.
- Compute the balance in the inventory account as of December 31, 2019. (Assume that the level of inventory did not change from last year.)
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