LO 4, 5, 6 P10-89B. (Learning Objectives 4, 5, 6: Prepare a corporation's...
50.1K
Verified Solution
Link Copied!
Question
Accounting
LO 4, 5, 6 P10-89B. (Learning Objectives 4, 5, 6: Prepare a corporation's balance sheet; measure profitability) The following accounts and related balances of Cardinal Designers, Inc., as of December 31, 2018, are arranged in no particular order: Cash S 16,300 $45,000 21,000 Interest expense Property, plant, and vable, net... Paid-in capital in excess of par--common equipment, net 358,000 16,000 29,000 90,000 89,000 Common stock, $1 par, 1,500,000 shares authorized, g-term note payable Inventory Dividends payable Retained earnings Accounts payable Trademarks, ne... Goodwill Prepaid expenses 24,000 4,000 Common stockholders equity, December 31, 2017.221,000 90,000 496,000 35,000 135,000 Net income 9,000 Total assets, 20,000 December 31, 2017... Treasury stock 20,000 shares at cost... Net sa 750,000 Requirements 1. Prepare Cardinal 's classified balance sheet in the account format at December 31, 2018. 2. Use a DuPont Analysis to calculate rate of return on total assets and rate of return on common stockholders' equity for the year ended December 31, 2018. 3. Do these rates of return suggest strength or weakness? Give your reason. What additional information might help you make your decision
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: Flex AI - Your personal assistant for all your inquiries!
