Sam\'s Stereo had the following accounts and amounts in its financial statement

Question

Sam's Stereo had the following accounts and amounts in its financial statement on December 31, 2006. Assume that all balance sheet items reflect account balances at December 31, 2006, and that all income statement items reflect activities that occurred during the year then ended. Interest expense, 8,000; Paid-in-capital, 30,000; Accumulated depreciation, 9,000; Notes payable (long term) 120,000; Rent expense 15,000; Merchandise inventory, 380,000; Accounts receivable, 92,000; Depreciation expense, 6,000; Land, 56,000; Retained earnings, 410,000; Cash 82,000; Cost of goods sold, 780,000; Equipment, 36,000; Income tax expense, 90,000; Accounts payable, 52,000; Sales revenue, 1,360,000
1. Sam's working capital at the end of the year is: (Points : 4)
$122,000
$493,000
$502,000
$538,000


2. Sam's total assets at the end of the year are: (Points : 4)
$637,000
$655,000
$1,047,000
$1,056,000


3. Sam's gross margin for the year is: (Points : 4)
$565,000
$580,000
$672,000
$940,000


4. Sam's income from operations (operating income) is: (Points : 4)
$461,000
$507,000
$551,000
$559,000 Sam's Stereo had the following accounts and amounts in its financial statement on December 31, 2006. Assume that all balance sheet items reflect account balances at December 31, 2006, and that all income statement items reflect activities that occurred during the year then ended. Interest expense, 8,000; Paid-in-capital, 30,000; Accumulated depreciation, 9,000; Notes payable (long term) 120,000; Rent expense 15,000; Merchandise inventory, 380,000; Accounts receivable, 92,000; Depreciation expense, 6,000; Land, 56,000; Retained earnings, 410,000; Cash 82,000; Cost of goods sold, 780,000; Equipment, 36,000; Income tax expense, 90,000; Accounts payable, 52,000; Sales revenue, 1,360,000
1. Sam's working capital at the end of the year is: (Points : 4)
$122,000
$493,000
$502,000
$538,000


2. Sam's total assets at the end of the year are: (Points : 4)
$637,000
$655,000
$1,047,000
$1,056,000


3. Sam's gross margin for the year is: (Points : 4)
$565,000
$580,000
$672,000
$940,000


4. Sam's income from operations (operating income) is: (Points : 4)
$461,000
$507,000
$551,000
$559,000

Explanation / Answer

1.ANSWER = $502,000 Working Capital = Current Assets

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