50.1K

Verified Solution

Link Copied!

Hedrick Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 317,000 $ 415,000 Marketable securities 0 102,000 Accounts receivable, net 897,000 598,000 Inventory 1,340,000 780,000 Prepaid expenses 78,000 67,000 Total current assets 2,632,000 1,962,000 Plant and equipment, net 3,336,800 3,164,700 Total assets $ 5,968,800 $ 5,126,700 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 1,350,000 $ 880,000 Bonds payable, 10% 1,270,000 1,190,000 Total liabilities 2,620,000 2,070,000 Stockholders' equity: Preferred stock, 8%, $30 par value 600,000 600,000 Common stock, $40 par value 2,000,000 2,000,000 Retained earnings 748,800 456,700 Total stockholders' equity 3,348,800 3,056,700 Total liabilities and stockholders' equity $ 5,968,800 $ 5,126,700 Hedrick Company Comparative Income Statement and Reconciliation This Year Last Year Sales (all on account) $ 5,390,000 $ 4,160,000 Cost of goods sold 4,190,000 3,260,000 Gross margin 1,200,000 900,000 Selling and administrative expenses 510,000 520,000 Net operating income 690,000 380,000 Interest expense 127,000 119,000 Net income before taxes 563,000 261,000 Income taxes (30%) 168,900 78,300 Net income 394,100 182,700 Dividends paid: Preferred stock 48,000 48,000 Common stock 54,000 27,000 Total dividends paid 102,000 75,000 Net income retained 292,100 107,700 Retained earnings, beginning of year 456,700 349,000 Retained earnings, end of year $ 748,800 $ 456,700
e. The average sale period. (The inventory at the beginning of last year totaled $540,000.) (Use 365 days in a year.Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number.) This year Last year Average sale period days days

Answer & Explanation Solved by verified expert

See Answer