Canadian Bacon Inc. financial statements are presented in the table below. Based

Question

Canadian Bacon Inc. financial statements are presented in the table below.

            Based on the information in the table, and using a 365-day year, calculate Average Day’s Cost of Goods Sold.

Round the answers to two decimal places

Balance Sheet December 31, 2011

Income Statement Year of 2011

Cash and marketable securities $143,000 Accounts payable $278,000 Accounts receivable $354,000 Notes payable $87,000 Inventories $672,000 Accrued expenses $65,000 Prepaid expenses $12,500 Total current liabilities $430,000 Total current assets $1,181,500 Long-term debt $284,000 Gross fixed assets $1,675,000 Par value and paid-in-capital $228,000 Less: accumulated depreciation $500,000 Retained Earnings $1,414,500 Net fixed assets $1,175,000 Common Equity 1,642,500 Total assets $2,356,500 Total liabilities and owner’s equity $2,356,500

Explanation / Answer

Average day's cost of goods sold= Cost of goods sold / Number of days

cost of goods sold in the financial year 2011 = $2,195,620.00

So, the Average cost of goods sold in financial year = $2,195,620 / 365

= $6,015.40 per day

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