ring journal entries for purchases & sales transactions. (16 Points-2 pts. each)
ID: 2596876 • Letter: R
Question
ring journal entries for purchases & sales transactions. (16 Points-2 pts. each) 08, 2017, BossTunes bought 80 sterco systems to resell at a cost of $90 per stereo. The terms of e were 3/10, n30. Boss Tunes paid for the stereos within the discount period and paid in ful amount. On March 12, 2017, BossTunes sold 22 sterene tn ronln 1) Balance Sheet and Income Statement Classification & Financial Ratios. (8 Points). 12/3 1/2017 post-closing trial balance (S in thousands) for Libby Corporation is presented below. Sales for the year were $6,000,000. COGS for the year were $4,800,000 Credits 10,000 Debits Interest payable Bonds payable, due 2028 Accounts Receivable Inventory Accumulated depreciation- F&F; Buildings Common stock Furniture & Fixtures Cash Retained earnings Patents (unamortized balance)25,000 Accounts payable Allowance for uncollectible accounts Accumulated depreciation- Bldgs Investments Land Notes payable, due 2018 180,000 450,000 180,000 280,000 113,000 80,000 310,000 22,000 85,000 Totals 1.198,000 1,198,0 00 Hint: Identify the accounts on the trial balance (i.e., Current assets, property, plant & equip (BAFFLE), intangible assets, other long-term assets, current liabilities, long-term liabilities, and owners' equity). Then, make a balance sheet to help you answer the questions below. Required: Calculate the following amounts: 1. S Total assets Total current liabilities 2. $ 3. STotal long-term liabilities Total property, plant& equipment (BAFFLE), net of depreciation 4. $ Required: Calculate the following financial ratios Working capital Debt-to-equity ratio (round to two decimal places) Collection days (round to the nearest whole number) Inventory turnover (round to the nearest whole number)Explanation / Answer
Balance sheet Assets Current assets Cash 22000 Accounts receivable 450000 Allowance for uncollectible accounts -14000 Inventory 180000 Total current assets 638000 Plant property and equipment Furniture and fixture 113000 Accumulated depreciation F&F -80000 Building 280000 Accumulated depreciation building -50000 Land 65000 Total plant property and equipment 328000 Other long term investment 63000 Intangible assets Patents 25000 1054000 Liabilities and stocjholders equity Liabilities Current liabilities Interest payable 10000 Accounts payable 185000 Notes payable due in 2018 45000 Total current liabilities 240000 Long term liabilities Bonds payable due in 2028 180000 Total liabilities 420000 Stockholders equity Common stock 310000 Retained earnings 324000 Total stockholders equity 634000 Total liabilities and stockholders equity 1054000 Working capital = Current assets - current liabilities Total current assets 638000 Total current liabilities 240000 Working capital 398000 Debt to equity ratio Total liabilities 420000 Total stockholdres equity 634000 Debt equity ratio 0.66 Receivable turnover = Net sales / Average accounts receivable Net sales 6000000 Ending accounts receivable 436000 Receivable turnover 13.8 Days sales uncollected = 365 / accounts receivable tunover Days sales uncollected 27 Days Inventory turnover = Cost of goods sold / Average inventory Cost of goods sold 4800000 Ending inventory 180000 Inventory turnover 27 Times Days sale in inventory = 365 / inventory turnover Days sales in inventory 14 Days
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