ACC305_Week2_Assignment1

ACC305_Week2_Assignment1 - Case 5-18 Integrating Case 5-18...

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Case 5-18 1 Integrating Case 5-18
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Case 5-18 2 Covington Pike Corporation Balance Sheet Assets Current Assets: Cash $15,000 Accounts Receivable (net) 12,000 Inventory 30,000 Other current assets 3,000 Total Current Assets 60,000 Property, Plant, and Equipment Property, Plant, and Equipment (net) 140,000 Total Assets $200,000 Liabilities and Shareholders’ Equity Current Liabilities: Accounts Payable $25,000 Short-term Notes 5,000 Total Current Liabilities 30,000 Long-Term Liabilities: Bonds Payable 20,000 Total Liabilities 50,000 Shareholders’ Equity 150,000
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Case 5-18 3 Total Liabilities and Shareholders’ Equity $200,000 Covington Pike Corporation Income Statement Sales $300,000 Cost of Goods Sold (180,000) Gross Profit 120,000 Operating Expenses (96,000) Interest Expense (2,000) Tax Expense (7,000) Net Income $15,000 Calculations Balance Sheet: Cash: given Accounts receivable: If ( )= Net salesAverage accounts receivable net 25 Then Average accounts receivable = = , Net sales25 $300 00025
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ACC305_Week2_Assignment1 - Case 5-18 Integrating Case 5-18...

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