Jackson Enterprises Income Statement For Year Ended December 31, 20-- Revenue from sales: Sales $180,000 Less: Sales returns and allowances 10,000 Net sales $170,000 Cost of goods sold: Merchandise inventory, January 1, 20-- $7,700 Estimated returns inventory, January 1, 20-- 1,300 $9,000 Purchases $92,420 Less: Purchases returns and allowances $1,872 Purchases discounts 1,810 3,682 Net purchases $88,738 Add: Freight-in 961 Cost of goods purchased 89,699 Goods available for sale $98,699 Less: Merchandise inventory, Dec. 31, 20-- $7,320 Estimated returns inventory, Dec. 31, 20-- 1,180 8,500 Cost of goods sold 90,199 Gross profit $79,801 Operating expenses: Wages expense $37,602 Advertising expense 1,230 Supplies expense 354 Phone expense 2,294 Utilities expense 11,116 Insurance expense 944 Depreciation expense—building 3,514 Depreciation expense—equipment 3,524 Miscellaneous expense 542 Total operating expenses 61,120 Income from operations $18,681 Other revenues: Interest revenue $1,898 Other expenses: Interest expense 850 1,048 Net income $19,729 Jackson Enterprises Statement of Owner's Equity For Year Ended December 31, 20-- J. B. Gray, capital, January 1, 20-- $81,941 Net income for the year $19,729 Less: Withdrawals for the year 16,000 Increase in capital 3,729 J. B. Gray, capital, December 31, 20-- 85,670 Jackson Enterprises Balance Sheet December 31, 20-- Assets Current assets: Cash $20,900 Accounts receivable 18,900 Merchandise inventory 7,320 Estimated returns inventory 1,180 8,500 Supplies 1,400 Prepaid insurance 900 Total current assets $50,600 Property, plant, and equipment: Building $91,500 Less: Accumulated depreciation-building 29,000 $62,500 Equipment $33,000 Less: Accumulated depreciation-equipment 7,400 25,600 Total property, plant, and equipment 88,100 Total assets $138,700 Liabilities Current liabilities: Accounts payable $11,000 Customer refunds payable 1,500 Wages payable 400 Sales tax payable 1,300 Mortgage payable (current portion) 720 Total current liabilities $14,920 Long-term liabilities: Mortgage payable $38,830 Less: Current portion 720 38,110 Total liabilities $53,030 Owner's Equity J. B. Gray, capital 85,670 Total liabilities and owner's equity $138,700 Compute the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20--, was $21,200. Round answers to one decimal place. Jackson Enterprises December 31, 20-- Working capital $ Current ratio to 1 Quick ratio to 1 Return on owner's equity % Accounts receivable turnover Average number of days required to collect receivables days Inventory turnover Average number of days required to sell inventory days

Jackson Enterprises Income Statement For Year Ended December 31, 20-- Revenue from sales: Sales $180,000 Less: Sales returns and allowances 10,000 Net sales $170,000 Cost of goods sold: Merchandise inventory, January 1, 20-- $7,700 Estimated returns inventory, January 1, 20-- 1,300 $9,000 Purchases $92,420 Less: Purchases returns and allowances $1,872 Purchases discounts 1,810 3,682 Net purchases $88,738 Add: Freight-in 961 Cost of goods purchased 89,699 Goods available for sale $98,699 Less: Merchandise inventory, Dec. 31, 20-- $7,320 Estimated returns inventory, Dec. 31, 20-- 1,180 8,500 Cost of goods sold 90,199 Gross profit $79,801 Operating expenses: Wages expense $37,602 Advertising expense 1,230 Supplies expense 354 Phone expense 2,294 Utilities expense 11,116 Insurance expense 944 Depreciation expense—building 3,514 Depreciation expense—equipment 3,524 Miscellaneous expense 542 Total operating expenses 61,120 Income from operations $18,681 Other revenues: Interest revenue $1,898 Other expenses: Interest expense 850 1,048 Net income $19,729 Jackson Enterprises Statement of Owner's Equity For Year Ended December 31, 20-- J. B. Gray, capital, January 1, 20-- $81,941 Net income for the year $19,729 Less: Withdrawals for the year 16,000 Increase in capital 3,729 J. B. Gray, capital, December 31, 20-- 85,670 Jackson Enterprises Balance Sheet December 31, 20-- Assets Current assets: Cash $20,900 Accounts receivable 18,900 Merchandise inventory 7,320 Estimated returns inventory 1,180 8,500 Supplies 1,400 Prepaid insurance 900 Total current assets $50,600 Property, plant, and equipment: Building $91,500 Less: Accumulated depreciation-building 29,000 $62,500 Equipment $33,000 Less: Accumulated depreciation-equipment 7,400 25,600 Total property, plant, and equipment 88,100 Total assets $138,700 Liabilities Current liabilities: Accounts payable $11,000 Customer refunds payable 1,500 Wages payable 400 Sales tax payable 1,300 Mortgage payable (current portion) 720 Total current liabilities $14,920 Long-term liabilities: Mortgage payable $38,830 Less: Current portion 720 38,110 Total liabilities $53,030 Owner's Equity J. B. Gray, capital 85,670 Total liabilities and owner's equity $138,700 Compute the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20--, was $21,200. Round answers to one decimal place. Jackson Enterprises December 31, 20-- Working capital $ Current ratio to 1 Quick ratio to 1 Return on owner's equity % Accounts receivable turnover Average number of days required to collect receivables days Inventory turnover Average number of days required to sell inventory days

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...

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Jackson Enterprises Income Statement For Year Ended December 31, 20--
Revenue from sales:
Sales			$180,000
Less: Sales returns and allowances			10,000
Net sales				$170,000
Cost of goods sold:
Merchandise inventory, January 1, 20--		$7,700
Estimated returns inventory, January 1, 20--		1,300	$9,000
Purchases		$92,420
Less: Purchases returns and allowances	$1,872
Purchases discounts	1,810	3,682
Net purchases		$88,738
Add: Freight-in		961
Cost of goods purchased			89,699
Goods available for sale			$98,699
Less: Merchandise inventory, Dec. 31, 20--		$7,320
Estimated returns inventory, Dec. 31, 20--		1,180	8,500
Cost of goods sold				90,199
Gross profit				$79,801
Operating expenses:
Wages expense			$37,602
Advertising expense			1,230
Supplies expense			354
Phone expense			2,294
Utilities expense			11,116
Insurance expense			944
Depreciation expense—building			3,514
Depreciation expense—equipment			3,524
Miscellaneous expense			542
Total operating expenses				61,120
Income from operations				$18,681
Other revenues:
Interest revenue			$1,898
Other expenses:
Interest expense			850	1,048
Net income				$19,729

Jackson Enterprises Statement of Owner's Equity For Year Ended December 31, 20--
J. B. Gray, capital, January 1, 20--		$81,941
Net income for the year	$19,729
Less: Withdrawals for the year	16,000
Increase in capital		3,729
J. B. Gray, capital, December 31, 20--		85,670

Jackson Enterprises Balance Sheet December 31, 20--
Assets
Current assets:
Cash		$20,900
Accounts receivable		18,900
Merchandise inventory	7,320
Estimated returns inventory	1,180	8,500
Supplies		1,400
Prepaid insurance		900
Total current assets			$50,600
Property, plant, and equipment:
Building	$91,500
Less: Accumulated depreciation-building	29,000	$62,500
Equipment	$33,000
Less: Accumulated depreciation-equipment	7,400	25,600
Total property, plant, and equipment			88,100
Total assets			$138,700
Liabilities
Current liabilities:
Accounts payable	$11,000
Customer refunds payable	1,500
Wages payable	400
Sales tax payable	1,300
Mortgage payable (current portion)	720
Total current liabilities		$14,920
Long-term liabilities:
Mortgage payable	$38,830
Less: Current portion	720	38,110
Total liabilities			$53,030
Owner's Equity
J. B. Gray, capital			85,670
Total liabilities and owner's equity			$138,700

Compute the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20--, was $21,200.

Round answers to one decimal place.


Jackson Enterprises
December 31, 20--
Working capital	$
Current ratio		to 1
Quick ratio		to 1
Return on owner's equity	%
Accounts receivable turnover
Average number of days required to collect receivables	days
Inventory turnover
Average number of days required to sell inventory	days

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