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1. XYZ Corporation's most recent balance sheet and income statement appear below: XYZ Corporation Statement of Financial Position As of December 31, 2020 2019 Current Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Plant and equipment, net Total Assets P 160,000 240,000 130,000 60,000 590,000 910,000 P1.500,000 P1,540,000 P 180,000 300,000 130,000 _ 60,000 670,000 870,000 Current Liabilities: P 150,000 30,000 90,000 270,000 190,000 460,000 P 180,000 30,000 _90,000 300,000 220.000 520,000 Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Bonds payable Total Liabilities Stockholders' Equity: Preferred stock, Pl00 par value, 5% Common stock, P10 par value Additional paid-in-capital – common Retained earnings Total Stockholders' Equity Total Liabilities & Stockholders' Equity ABS 200,000 100,000 140,000 580.000 1,020,000 P 1,500,000 P1,540,000 200,000 100,000 140,000 _ 600,000 1,040,000 XYZ Corporation Income Statement For the Year Ended December 31, 2020 Sales (all on account) Cost of goods sold Gross Margin Selling and administrative expense Net operating income Interest expense Net income before taxes P1,240,000 (820,000) 420,000 |(290,000) 130,000 |(30,000) 100,000 Income taxes (30%) Net income _(30,000) P 70,000 Required: Compute the following for 2020: a. Working capital.

1. XYZ Corporation's most recent balance sheet and income statement appear below: XYZ Corporation Statement of Financial Position As of December 31, 2020 2019 Current Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Plant and equipment, net Total Assets P 160,000 240,000 130,000 60,000 590,000 910,000 P1.500,000 P1,540,000 P 180,000 300,000 130,000 _ 60,000 670,000 870,000 Current Liabilities: P 150,000 30,000 90,000 270,000 190,000 460,000 P 180,000 30,000 _90,000 300,000 220.000 520,000 Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Bonds payable Total Liabilities Stockholders' Equity: Preferred stock, Pl00 par value, 5% Common stock, P10 par value Additional paid-in-capital – common Retained earnings Total Stockholders' Equity Total Liabilities & Stockholders' Equity ABS 200,000 100,000 140,000 580.000 1,020,000 P 1,500,000 P1,540,000 200,000 100,000 140,000 _ 600,000 1,040,000 XYZ Corporation Income Statement For the Year Ended December 31, 2020 Sales (all on account) Cost of goods sold Gross Margin Selling and administrative expense Net operating income Interest expense Net income before taxes P1,240,000 (820,000) 420,000 |(290,000) 130,000 |(30,000) 100,000 Income taxes (30%) Net income _(30,000) P 70,000 Required: Compute the following for 2020: a. Working capital.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 103.4C
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EXERCISES: 1. XYZ Corporation's most recent balance sheet and income statement appear below: XYZ Corporation Statement of Financial Position As of December 31, 2020 2019 Current Assets P 180,000 300,000 130,000 | 60,000 670,000 870,000 P 1,500,000 P1.,540,000 P 160,000 240,000 130,000 Cash Accounts receivable Inventory Prepaid expenses Total current assets 60,000 590,000 910,000 Plant and equipment, net Total Assets Current Liabilities: P 150,000 30,000 90,000 270,000 190,000 460,000 P 180,000 30,000 90,000 300,000 220,000 520,000 Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Bonds payable Total Liabilities Stockholders' Equity: Preferred stock, P100 par value, 5% Common stock, P10 par value Additional paid-in-capital – common Retained earnings Total Stockholders' Equity Total Liabilities & Stockholders' Equity AB 200,000 100,000 140,000 600,000 1,040,000 P 1,500,000 PI1,540,000 200,000 100,000 140,000 580,000 1,020,000 XYZ Corporation Income Statement For the Year Ended December 31, 2020 Sales (all on account) Cost of goods sold Gross Margin Selling and administrative expense Net operating income Interest expense Net income before taxes P 1,240,000 (820,000) 420,000 |(290,000) 130,000 |(30,000) 100,000 (30,000) P 70,000 Income taxes (30%) Net income Required: Compute the following for 2020: a. Working capital.
Transcribed Image Text:EXERCISES: 1. XYZ Corporation's most recent balance sheet and income statement appear below: XYZ Corporation Statement of Financial Position As of December 31, 2020 2019 Current Assets P 180,000 300,000 130,000 | 60,000 670,000 870,000 P 1,500,000 P1.,540,000 P 160,000 240,000 130,000 Cash Accounts receivable Inventory Prepaid expenses Total current assets 60,000 590,000 910,000 Plant and equipment, net Total Assets Current Liabilities: P 150,000 30,000 90,000 270,000 190,000 460,000 P 180,000 30,000 90,000 300,000 220,000 520,000 Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Bonds payable Total Liabilities Stockholders' Equity: Preferred stock, P100 par value, 5% Common stock, P10 par value Additional paid-in-capital – common Retained earnings Total Stockholders' Equity Total Liabilities & Stockholders' Equity AB 200,000 100,000 140,000 600,000 1,040,000 P 1,500,000 PI1,540,000 200,000 100,000 140,000 580,000 1,020,000 XYZ Corporation Income Statement For the Year Ended December 31, 2020 Sales (all on account) Cost of goods sold Gross Margin Selling and administrative expense Net operating income Interest expense Net income before taxes P 1,240,000 (820,000) 420,000 |(290,000) 130,000 |(30,000) 100,000 (30,000) P 70,000 Income taxes (30%) Net income Required: Compute the following for 2020: a. Working capital.
Required: Compute the following for 2020: a. Working capital. Pg. 1 Financial Management b. Current ratio. c. Acid-test ratio. d. Accounts receivable turnover. e. Average collection period. f. Inventory turnover. g. Average sale period.
Transcribed Image Text:Required: Compute the following for 2020: a. Working capital. Pg. 1 Financial Management b. Current ratio. c. Acid-test ratio. d. Accounts receivable turnover. e. Average collection period. f. Inventory turnover. g. Average sale period.
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