USE THE DATA BELOW TO ANSWER QUESTIONS 29, 30 AND 31 - THE DATA WILL BE REPEATED
ID: 2766068 • Letter: U
Question
USE THE DATA BELOW TO ANSWER QUESTIONS 29, 30 AND 31 - THE DATA WILL BE REPEATED FOR EACH OF THE QUESTIONS, BUT IT IS IDENTICAL FOR EACH. Giver the financial data and ratios, lifted below for the Atlanta Company, determine what Atlanta Company recorded as. Long Term Debt on its 2012 balance sheet. (Record your answer without a dollar sign, without commas, and if the answer is a negative number, use the minus sign followed by the number with no spaces between the minus sign and the number - thus record $3,743 as 3743 or negative 18 as, -18).Explanation / Answer
Answer:
Cash sales=10000*20%=2000
Total cash=2000+250=2250
COGS=10000-4000=6000
Inventory turnover ratio=COGS/Average inventory
4=6000/Average inventory
Average inventory=1500
Net profit=(NP/Sales)*100
8%=(NP/10000)*100
NP=800
Average collection period=360 days/Debtor turnover ratio
45 days=360 days/DTR
DTR=8 times
DTR=Credit sales/Debors
8=8000/debtor
Debtor=1000
ROA=Net income/Total fixed assets
20%=800/Total Fixed assets
Total fixed assets=4000
ROE=Net income/Equity
50%=800/Equity
Equity=1600
CR=CA/CL
2.5=4750/CL
CL=1900
Accounts payable days=360/CTR
CTR=360/30=12 times
CTR=Net Credit purchases/Average Creditors
Average Creditors=500
Atlanta Company Balance Sheet For year ending December 31,2012 Cash 2250 Accounts receivable 1000 Inventory 1500 Net fixed assets 4000 Total assets 8750 Notes payable 1400 Accounts payable 500 Long term debt 5250 Equity 1600 Total liab. And equity 8750Related Questions
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