HW #4 Solution

HW #4 Solution - 401 Homework #4 Problem A Direct Method...

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Problem A – Direct Method Putnam, Inc. Comparative Balance Sheets December 31, 2013 2012 Assets: Current Assets: Cash $ 690,000 $ 540,000 Accounts Receivable (net) 1,560,000 1,080,000 Inventory 1,950,000 1,260,000 Prepaid Expenses 351,000 315,000 Total Current Assets 4,551,000 3,195,000 Long-Term Investments 225,000 0 Plant Assets: 2,190,000 1,440,000 Accumulated Depreciation (450,000 ) (270,000 ) Total Plant Assets 1,740,000 1,170,000 Total Assets $6,516,000 $4,365,000 Equities: Current Liabilities: Accounts Payable $1,275,000 $1,095,000 Accrued Expenses 309,000 282,000 Dividends Payable 201,000 0 Total Current Liabilities 1,785,000 1,377,000 Long-Term Notes Payable 825,000 Stockholders' Equity: Common Stock 3,000,000 2,400,000 Retained Earnings 906,000 588,000 Total Equities $6,516,000 $4,365,000 Putnam, Inc. Comparative Income Statements December 31, 2013 2012 Net Credit Sales $7,020,000 $3,753,000 Cost of Goods Sold 3,915,000 1,881,000 Gross Profit
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HW #4 Solution - 401 Homework #4 Problem A Direct Method...

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