The December 31, 2019, balance sheet for Walton Corporation is presented here. These are the only accounts on Walton’s balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information: WALTON CORPORATIONBalance Sheet As of December 31, 2019Assets Cash$35,000 Accounts receivable (net) ? Inventory ? Property, plant, and equipment (net) 305,000 $452,000 Liabilities and Stockholders’ Equity Accounts payable (trade)$? Income taxes payable (current) 35,000 Long-term debt ? Common stock 311,000 Retained earnings ? $? Additional Information Current ratio (at year end)1.4 to 1.0Total liabilities ÷ Total stockholders’ equity 60%Gross margin percentage 40%Inventory turnover (Cost of goods sold ÷ Ending inventory) 10.5timesGross margin for 2019$350,000 RequiredCompute the balance in trade accounts payable as of December 31, 2019.Compute the balance in retained earnings as of December 31, 2019.Compute the balance in the inventory account as of December 31, 2019. (Assume that the level of inventory did not change from last year.)

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Answered: The December 31, 2019, balance sheet…

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

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 10P: Comprehensive: Balance Sheet from Statement of Cash Flows Mills Company prepared the following...

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The December 31, 2019, balance sheet for Walton Corporation is presented here. These are the only accounts on Walton’s balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information:

WALTON CORPORATION Balance Sheet As of December 31, 2019
Assets
Cash	$	35,000
Accounts receivable (net)		?
Inventory		?
Property, plant, and equipment (net)		305,000
	$	452,000
Liabilities and Stockholders’ Equity
Accounts payable (trade)	$	?
Income taxes payable (current)		35,000
Long-term debt		?
Common stock		311,000
Retained earnings		?
	$	?

Additional Information
Current ratio (at year end)	1.4 to 1.0
Total liabilities ÷ Total stockholders’ equity		60	%
Gross margin percentage		40	%
Inventory turnover (Cost of goods sold ÷ Ending inventory)		10.5	times
Gross margin for 2019	$	350,000

Required

Compute the balance in trade accounts payable as of December 31, 2019.
Compute the balance in retained earnings as of December 31, 2019.
Compute the balance in the inventory account as of December 31, 2019. (Assume that the level of inventory did not change from last year.)

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