Exercise 13-12 Cheyenne Corp. experienced a fire on December 31, 2017, in which

ID: 2593147 • Letter: E

Question

Exercise 13-12

Cheyenne Corp. experienced a fire on December 31, 2017, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following balances.

December 31, 2017

December 31, 2016

Additional information:

Compute the following for Cheyenne Corp.. (Round all answers to 0 decimal place, e.g. 2,150.)

December 31, 2017

December 31, 2016

Cash $ 32,200 $ 15,800 Accounts receivable (net) 81,000 127,900 Inventory 203,400 186,000 Accounts payable 55,100 94,100 Notes payable 39,700 69,300 Common stock, $100 par 401,600 401,600 Retained earnings 119,200 103,200

Explanation / Answer

(a)

Inventory dec 31 2016

186000

Inventory dec 31 2017

203400

Average inventory

194700

Cost of goods sold

Inventory turnover * Average inventory

6.0*194700

1168200

(b)

Receivable dec 31 2016

127900

Receivable dec 31 2017

81000

Average receivable

104450

Net credit sales:

receivable turnover * average receivable

12.3*104450

1284735

(c )

Net income for 2017

Average common stock holders' equity

(401600+119200+401600+103200)/2

512800

Net income

512800*21%

107688

(d)

Return on assets

Net income/Average assets

Average assets:

Net income/19%

107688/19%

566780

Total assets

(x+609200)/2 =566780

Assets on dec 2017

524360

(566780*2)-609200

(a)