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6- Consider the following financial statements (in millions of TL). In 2016, the company did not pay any dividends. If this is the case, what was the retained earnings at the end of year 2015? Income Statement (2017) Credit Sales Cost of Goods Sold Balance Sheet (2017) Cash Accounts Payable ? Short-Term Debt ? Long-Term Debt 2.092 Common Stock 1.500 Accounts Receivable 125 Taxable Income Inventory Foxed Assets 845 845 Taxes (34%) Net Income Retained Eamings 1.132 Total Total ? Dividend (33.33%) Retained Eamings Main assumphons Sales has increased by 25% in 2017. "Cost of goods sold is 80% of sales in the income statement at all times. Al ofher tems are independent of sales. Each curent asset and accounts payable are fracions of sales in the balance sheet. All other items are independent of sales. Current ratio is 3, acoounts receivable tumover is 2, inventory turnover is 4, accounts payable tumover is 5 at all times. Tumovers are calculated with respect to the current period balances without averaging with past year balances. Throughout the year 2017: o the company raised funds through short term debt first. o the company raised the remaning funds through 50% long-term debt and 50% equity offering (oommon stock). 1.000 TL 842 TL 868 TL 974 TL Diğer.

6- Consider the following financial statements (in millions of TL). In 2016, the company did not pay any dividends. If this is the case, what was the retained earnings at the end of year 2015? Income Statement (2017) Credit Sales Cost of Goods Sold Balance Sheet (2017) Cash Accounts Payable ? Short-Term Debt ? Long-Term Debt 2.092 Common Stock 1.500 Accounts Receivable 125 Taxable Income Inventory Foxed Assets 845 845 Taxes (34%) Net Income Retained Eamings 1.132 Total Total ? Dividend (33.33%) Retained Eamings Main assumphons Sales has increased by 25% in 2017. "Cost of goods sold is 80% of sales in the income statement at all times. Al ofher tems are independent of sales. Each curent asset and accounts payable are fracions of sales in the balance sheet. All other items are independent of sales. Current ratio is 3, acoounts receivable tumover is 2, inventory turnover is 4, accounts payable tumover is 5 at all times. Tumovers are calculated with respect to the current period balances without averaging with past year balances. Throughout the year 2017: o the company raised funds through short term debt first. o the company raised the remaning funds through 50% long-term debt and 50% equity offering (oommon stock). 1.000 TL 842 TL 868 TL 974 TL Diğer.

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 13EB: Fortune Accounting reports $1,455,000 in credit sales for 2018 and $1,678,430 in 2019. It has an...
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6- Consider the following financial statements (in millions of TL). In 2016, the company did not pay any dividends. If this is the case, what was the retained earnings at the end of year 2015? Balance Sheet (2017) Income Statement (2017) Credit Sales Cost of Goods Sold Taxable Income Cash Accounts Payable Short-Term Debt 1.500 Accounts Receivable 125 Inventory Fixed Assets Long-Term Debt 2.092 Common Stock 845 845 Retained Eamings 1.132 Taxes (34%) Net Income Total Total Dividend (33.33%) Retained Earmings Main assumphions: Sales has increased by 25% in 2017. "Cost of goods sold is 80% of sales in the income statement at all times. All other items are independent of sales. Each current asset and accounts payable are fractions of sales in the balance sheet. All other items are independent of sales. Current ratio is 3, accounts receivable turnover is 2, inventory turnover is 4, accounts payable turmover is 5 at all times. Turnovers are calculated with respect to the current period balances without averaging with past year balances. Throughout the year 2017. o the company raised funds through short-term debt first. o the company raised the remaining funds through 50% long-term debt and 50% equity offering (oommon stock). 1.000 TL 842 TL 868 TL 974 TL Diğer:
Transcribed Image Text:6- Consider the following financial statements (in millions of TL). In 2016, the company did not pay any dividends. If this is the case, what was the retained earnings at the end of year 2015? Balance Sheet (2017) Income Statement (2017) Credit Sales Cost of Goods Sold Taxable Income Cash Accounts Payable Short-Term Debt 1.500 Accounts Receivable 125 Inventory Fixed Assets Long-Term Debt 2.092 Common Stock 845 845 Retained Eamings 1.132 Taxes (34%) Net Income Total Total Dividend (33.33%) Retained Earmings Main assumphions: Sales has increased by 25% in 2017. "Cost of goods sold is 80% of sales in the income statement at all times. All other items are independent of sales. Each current asset and accounts payable are fractions of sales in the balance sheet. All other items are independent of sales. Current ratio is 3, accounts receivable turnover is 2, inventory turnover is 4, accounts payable turmover is 5 at all times. Turnovers are calculated with respect to the current period balances without averaging with past year balances. Throughout the year 2017. o the company raised funds through short-term debt first. o the company raised the remaining funds through 50% long-term debt and 50% equity offering (oommon stock). 1.000 TL 842 TL 868 TL 974 TL Diğer:
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