Team+B+Problem+P7-1

Team+B+Problem+P7-1 - 60,910 Current ratio for balance...

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Team B Problem 7-1 A) 31-Dec Account recievable ($17,640 + 360) $18,000 Sales 28,000 Cash 45,640 Sales Discount 360 31-Dec Cash 22,200 Purchase Discount 250 Accounts Payable 22,450 B) Balance Sheet Current Assets Cash 39,000 Receivables 42,000 Inventories 67,000 Total 148,000 Current Liabilities Accounts payable 45,000 Other current liabilities 14,200 Total 59,200 Working capital 88,800 Adjustments Cash 39,000 less recorded in Dec (45,640) Add A/P les disc 22,200 15,560 Receivables 42,000 Add Collections and Cash discounts 18,000 60,000 Inventories 67,000 67,000 Total after adjustments-Current Assets 142,560 Accounts payable 45,000 Add A/P December 22,450 67,450 Other current liabilities 14,200 14,200 Total after adjustments-Current liabilities 81,650 Working capital After adjustment
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Unformatted text preview: 60,910 Current ratio for balance sheet 2.50000 Current ratio after adjustments 1.74598898 E8-25 Martin Company TeamB WK2 Dollar-Value LIFO Method: 2007 N/A 80,000 $ 2008 80,000 @ 1.00 80,000 26,000 @ 1.05 27,300 107,300 $ 2009 80,000 @ 1.00 80,000 10,000 @ 1.05 10,500 90,500 $ 2010 80,000 @ 1.00 80,000 10,000 @ 1.05 10,500 4,000 @ 1.30 5,200 95,700 $ 2011 80,000 @ 1.00 80,000 10,000 @ 1.05 10,500 4,000 @ 1.30 5,200 11,000 @ 1.4 15,400 111,100 $ 2012 80,000 @ 1.00 80,000 10,000 @ 1.05 10,500 4,000 @ 1.30 5,200 11,000 @ 1.4 15,400 17,000 @ 1.45 24,650 135,750 $ Reference: Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2010). Intermediate accounting (13th ed.). Hoboken, NJ: John Wiley & Sons....
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Team+B+Problem+P7-1 - 60,910 Current ratio for balance...

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