What is the inventory turnover? What analysis is it, liquidity, profitability, or Solvency? What does it tell us? New York BakeryBalance SheetDecember 2019AssetsCurrent assetsCash50,180.74Accounts receivable$ 951,766.20Raw materials24Finished goods inventory38.467.8918,522.00O Total current assets1 Deferred tax asset2 Property, Plant, & Equipment$ 1,058,936.83Land2476,000.00Building567,000.00Equipment$ 1,010,000.00$ (141.200.00)Accumulated Depr - Equip7 Total PPE$ 1,511.800.00$ 2,570,736.83B Total assetsLiabilities and Stockholders'Equity1 Current liabilitiesAccounts payable45,255.13AsLine of credit payableTaxes payable5,087.179,342.24Ex4.5 Total current liabilities59,684.546 Long term liabilitiesMortgage payable (current)$ 1,096,262.578 Total long term liabilities9 Total liabilitieso Stockholders' equity$ 1,096,262.57$ 1,155,947.11Common stock (no-par,200,000 share outstanding$550,000.00Retained earnings850,113.003 Total stockholders' equity34 Total liabilities and stockholders' equity$1.400,113.00$ 2,556,060.11 New York BakeryIncome StatementFor the Year Ended December 31, 2019Sales$ 4,173,100.00Cost of goods sold$2,937,641.56Gross margin$ 1,235.458.44Selling and administrative expense842,584.40Earnings before interest and taxInterest expense$392,874.0478.113.40Tаx expense2$16,500.00Net income298.260.641. No preferred dividends were declared.2. Market Price for Common Stock$419.753. Shares Outstanding200,000

Inventory turnover ratio = cost of goods sold/ average inventory Here, opening inventory is not…

New York Bakery Balance Sheet December 2019 Assets Current assets Cash 50,180.74 Accounts receivable $ 951,766.20 Raw materials 24 38.467.89 Finished goods inventory 18,522.00 O Total current assets 1 Deferred tax asset 2 Property, Plant, & Equipment $ 1,058,936.83 Land 24 76,000.00 Building 567,000.00 Equipment $ 1,010,000.00 $ (141.200.00) Accumulated Depr - Equip 7 Total PPE B Total assets $ 1,511.800.00 $ 2,570,736.83 Liabilities and Stockholders' Equity 1 Current liabilities Accounts payable 45,255.13 As Line of credit payable Taxes payable 5,087.17 9,342.24 Ex 5 Total current liabilities 6 Long term liabilities 59,684.54 Mortgage payable (current) $ 1,096,262.57 8 Total long term liabilities 9 Total liabilities o Stockholders' equity $ 1,096,262.57 $ 1,155,947.11 Common stock (no-par, 200,000 share outstanding Retained earnings $550,000.00 2$ 850,113.00 3 Total stockholders" equity 34 Total liabilities and stockholders' equity $1.400,113.00 $ 2,556,060.11

New York Bakery Balance Sheet December 2019 Assets Current assets Cash 50,180.74 Accounts receivable $ 951,766.20 Raw materials 24 38.467.89 Finished goods inventory 18,522.00 O Total current assets 1 Deferred tax asset 2 Property, Plant, & Equipment $ 1,058,936.83 Land 24 76,000.00 Building 567,000.00 Equipment $ 1,010,000.00 $ (141.200.00) Accumulated Depr - Equip 7 Total PPE B Total assets $ 1,511.800.00 $ 2,570,736.83 Liabilities and Stockholders' Equity 1 Current liabilities Accounts payable 45,255.13 As Line of credit payable Taxes payable 5,087.17 9,342.24 Ex 5 Total current liabilities 6 Long term liabilities 59,684.54 Mortgage payable (current) $ 1,096,262.57 8 Total long term liabilities 9 Total liabilities o Stockholders' equity $ 1,096,262.57 $ 1,155,947.11 Common stock (no-par, 200,000 share outstanding Retained earnings $550,000.00 2$ 850,113.00 3 Total stockholders" equity 34 Total liabilities and stockholders' equity $1.400,113.00 $ 2,556,060.11

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 4RE: Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020....

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