The December 31, Year 4, balance sheet for Burdette Corporation is presented...

70.2K

Verified Solution

Question

Accounting

The December 31, Year 4, balance sheet for Burdette Corporation is presented here. These are the only accounts on Burdettes balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information:

BURDETTE CORPORATION
Balance Sheet As of December 31, Year 4
Assets
Cash $ 31,000
Accounts receivable (net) ?
Inventory ?
Property, plant, and equipment (net) 298,000
$ 442,000
Liabilities and Stockholders Equity
Accounts payable (trade) $ ?
Income taxes payable (current) 31,000
Long-term debt ?
Common stock 304,000
Retained earnings ?
$ ?

Additional Information
Current ratio (at year end) 1.8 to 1.0
Total liabilities Total stockholders equity 70 %
Gross margin percentage 40 %
Inventory turnover (Cost of goods sold Ending inventory) 11.6 times
Gross margin for Year 4 $ 319,000


Required

a. Compute the balance in trade accounts payable as of December 31, Year 4.
b. Compute the balance in retained earnings as of December 31, Year 4.
c. Compute the balance in the inventory account as of December 31, Year 4. (Assume that the level of inventory did not change from last year.)



image
Required a. Compute the balance in trade accounts payable as of December b. Compute the balance in retained earnings as of December 31, Ye c. Compute the balance in the inventory account as of December 3 last year.) (For all requirements, negstive amounts should be indicated by a answers to the nearest whole dollor amount.)

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