M10-Chp-01-4-Review-of-Financial-Accounting

M10-Chp-01-4-Review-of-Financial-Accounting - 1. MC...

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1. MC Prob-Ratio-Cash flow be9f36c0b8317fdfd490142ea2434821e9812221.xls Page 1 of 2 Super Company - Balance Sheet at Beginning and End of 2010 Assets Jan. 1 Dec. 31 Jan. 1 Dec. 31 Cash $30,000 $50,000 Accounts Payable $29,000 $27,000 Accounts Receivable 35,000 40,000 Salaries Payable 4,000 3,000 Prepaid Expenses 5,000 20,000 Dividends Payable 3,000 5,000 Inventory 80,000 60,000 Long Term Bonds (10%) 0 45,000 Equipment 140,000 280,000 Common Stock($10 Par) 200,000 200,000 Accumulated Deprec. (40,000) (50,000) Retained Earnings 114,000 120,000 Total Assets $250,000 $400,000 Debt and Equity $350,000 $400,000 Income Statement for the Year Compute Answers to Questions Sales $360,000 Question no. 1 Cost of Goods Sold (280,000) Current Assets Gross Profit on Sales 80,000 Current Debt Rent, Salaries, etc. $20,000 Current Ratio Depreciation Expense $10,000 Operating Expenses (30,000) Question no. 2 Net Income before Taxes 50,000 Debt Income Tax Expense (10,000) Equity Net Income After Taxes $40,000 Ratio No equipment was sold. Accounts Payable relates entirely to inventory. All sales to customers are credit sales. The bonds were sold at the end of 2010. The entry to close the Income Summary account and the entry to close the Dividends Paid account were the only entries in Retained Earnings. Market price per share was $40 at December 31, 2010. What was the current ratio at the end of 2010?
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This note was uploaded on 09/14/2010 for the course LBST 2214 taught by Professor Ds during the Spring '08 term at UNC Charlotte.

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M10-Chp-01-4-Review-of-Financial-Accounting - 1. MC...

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