vv-2 - Chapter 4 Answers 1. Current assets: (.4 x 16...

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Chapter 4 Answers 1. Current assets: (.4 x 16 million) = 6,400,000 Net fixed assets: (.6 x 16 million) = 9,600,000 Total assets: (6,400,000 + 9,600,000) = 16,000,000 Accounts payable: (.3 x 16 million) = 4,800,000 Long-term debt: (non spontaneous) = 3,000,000 Total liabilities: (4,800,000 + 3,000,000) = 7,800,000 Common stock: (non spontaneous) = 1,000,000 Paid in capital: (non spontaneous) = 1,500,000 Retained earnings: (REnew= REold + NI – Div) 1,500,000 + 2,250,000 – 0 = 3,750,000 Total equity: (1,000,000 + 1,500,000 + 3,750,000) = 6,250,000 DFN = 16,000,000 – 7,800,000 – 6,250,000 = 1,950,000 2. a. Accounts receivable (4/30) = $30,000 Plus credit sales for May= $26,000 (.5 x 52,000) Less collections from April= $12,500 (.5 x 50,000 x .5) Less collections from March= $11,500 (.5 x 46,000 x .5) Total= $32,000 b. May cash sales= $26,000 April credit sales= $12,500 March credit sales= $11,500 Total= $50,000 3. Current assets: (.25 x 10 million) = 2,500,000
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This note was uploaded on 04/07/2011 for the course BUS M 301 taught by Professor Jimbrau during the Winter '11 term at BYU.

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vv-2 - Chapter 4 Answers 1. Current assets: (.4 x 16...

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