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Prepare a comparative balance sheet of Gilmour Company showing the dollar change and the percent change for each item.
(Round percentages to 2 decimal places, e.g. 2.25
%
. If $ or % change are in decrease, enter amounts or percentages using either a negative sign preceding the number e.g. -45, -2.25% or parentheses e.g. (45), (2.25)%.)
GILMOUR COMPANY
Comparative Balance Sheet
December 31, 2013 and 2012
December 31
Increase or (Decrease)
Assets
2013
2012
$ Change
% Change
Cash
$ 180,000
$ 275,000
$
Accounts receivable (net)
219,500
155,300
Short-term investments
269,300
149,600
Inventories
1,059,600
979,300
Prepaid expenses
24,750
24,750
Fixed assets
2,585,200
1,949,400
Accumulated depreciation
( 1,000,500
)
( 750,
100
)
Total
$ 3,337,850
$ 2,783,250
$
%
Liabilities and Stockholders’ Equity
Accounts payable
$ 50,020
$ 74,100
$
%
Accrued expenses
170,400
199,400
Bonds payable
450,500
189,600
Capital stock
2,100,000
1,769,300
Retained earnings
566,930
550,850
Total
$ 3,337,850
$ 2,783,250
$
%
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Answer each of the questions in the following unrelated situations.
(a) The current ratio of a company is 5:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $492,400, what is the amount of current liabilities?
Current Liabilities |
$ |
(b) A company had an average inventory last year of $209,000 and its inventory turnover was 5. If sales volume and unit cost remain the same this year as last and inventory turnover is 9 this year, what will average inventory have to be during the current year?
(Round answer to 0 decimal places, e.g. 125.)
Average Inventory |
(c) A company has current assets of $88,790 (of which $37,160 is inventory and prepaid items) and current liabilities of $37,160. What is the current ratio? What is the acid-test ratio? If the company borrows $13,870 cash from a bank on a 120-day loan, what will its current ratio be? What will the acid-test ratio be?
(Round answers to 2 decimal places, e.g. 2.50.)
Current Ratio |
:1 |
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Acid Test Ratio |
||||||
New Current Ratio |
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New Acid Test Ratio |
(d) A company has current assets of $605,100 and current liabilities of $239,000. The board of directors declares a cash dividend of $191,200. What is the current ratio after the declaration but before payment? What is the current ratio after the payment of the dividend?
(Round answers to 2 decimal places, e.g. 2.50.)
Current ratio after the declaration but before payment |
Current ratio after the payment of the dividend |
( 750,100 |
(b) Prepare a comparative balance sheet of Gilmour Company showing the dollar change and the percent change for each item. GILMOUR COMPANY December 31
Increase or (Decrease) Assets 2013
2012
$ Change
% Change Cash $ 180,200 $ 275,700 $ % Accounts receivable (net) 220,400 154,300 Short-term investments 270,100 149,400 Inventories 1,061,000 980,700 Prepaid expenses 24,140 24,140 Fixed assets 2,585,600 1,949,300 Accumulated depreciation ( 1,000,900 ) ( 750,100 ) Total $ 3,340,540
$ 2,783,440
$ %
Liabilities and Stockholders’ Equity Accounts payable $ 50,700 $ 75,180 $ % Accrued expenses 169,500 200,500 Bonds payable 450,100 190,600 Capital stock 2,100,000 1,770,300 Retained earnings 570,240
546,860
Total $ 3,340,540
$ 2,783,440
$ % |
6.58
77.40
70.03
-29.96
-26.95
100
100
1.52
2.70
5.07
7.20
5.58
13.47
6.85
62.86
63.60
17.07
19.65
100
100
8.07
5.38
31.74
35.19
0.74
0.89
77.45
70.04
(29.97)
(26.95)
100
100
1.50
2.66
5.11
7.16
13.50
6.81
62.91
63.57
16.98
19.79
100
5.39
100
123100
116111
2.39
1.39
2.01
1.28
1.41
1.71
9.88
5.39
9.91
6.60
5.54
8.09
5.37
31.76
35.23
0.72
0.87