Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the december 31, 2019, balance sheet for benson co

The December 31, 2019, balance sheet for Benson Corporation is presented here. These are the...

80.2K

Verified Solution

Question

Accounting

The December 31, 2019, balance sheet for Benson Corporation is presented here. These are the only accounts on Bensons balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information:

BENSON CORPORATION Balance Sheet As of December 31, 2019
Assets
Cash $ 25,000
Accounts receivable (net) ?
Inventory ?
Property, plant, and equipment (net) 294,000
$ 435,000
Liabilities and Stockholders Equity
Accounts payable (trade) $ ?
Income taxes payable (current) 25,000
Long-term debt ?
Common stock 300,000
Retained earnings ?
$ ?

Additional Information
Current ratio (at year end) 1.2 to 1.0
Total liabilities Total stockholders equity 60 %
Gross margin percentage 40 %
Inventory turnover (Cost of goods sold Ending inventory) 10.5 times
Gross margin for 2019 $ 350,000

Required

Compute the balance in trade accounts payable as of December 31, 2019.

Compute the balance in retained earnings as of December 31, 2019.

Compute the balance in the inventory account as of December 31, 2019. (Assume that the level of inventory did not change from last year.)

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!
Become a Member

Other questions asked by students