Item2 Time Remaining 2 hours 50 minutes 38 seconds 02:50:38 Item 2 Time Remaining 2...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Item2
Time Remaining 2 hours 50 minutes 38 seconds
02:50:38
Item 2
Time Remaining 2 hours 50 minutes 38 seconds
02:50:38
The 2020 financial statements of Outdoor Waterworks Inc. follow:
Outdoor Waterworks Inc.
Income Statement
For Year Ended December 31, 2020
Net sales
$
1,096,000
Cost of goods sold:
Inventory, Dec. 31, 2019
$
81,860
Purchases
613,840
Goods available for sale
$
695,700
Inventory, Dec. 31, 2020
60,990
Cost of goods sold
634,710
Gross profit from sales
$
461,290
Operating expenses
286,360
Operating profit
$
174,930
Interest expense
12,700
Profit before taxes
$
162,230
Income taxes
19,514
Profit
$
142,716
Outdoor Waterworks Inc.
Balance Sheet
December 31, 2020
Assets
Cash
$
23,500
Current non-strategic investments
26,040
Accounts receivable, net
53,380
Notes receivable
11,860
Inventory
60,990
Prepaid expenses
6,020
Plant and equipment, net
333,020
Total assets
$
514,810
Liabilities and Equity
Accounts payable
$
49,360
Accrued wages payable
6,500
Income taxes payable
7,350
Long-term note payable, secured by mortgage on plant
117,900
Common shares, 160,000 shares
198,500
Retained earnings
135,200
Total liabilities and equity
$
514,810
Assume all sales were on credit. Also assume the long-term note payable is due in 2023, with no current portion. On the December 31, 2019, balance sheet, the assets totalled $439,220, common shares were $198,500, and retained earnings were $111,540. Required: Calculate the following: (Use 365 days in a year. Do not round your intermediate calculations. Round the answers to 2 decimal places.)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
