The working capital of BT21 Co. on December 31, 2021 are presented below: · Cash on hand – 200,000 · Cash in bank – 108,000 · Notes receivable – 250,000 · Trade receivable – 600,000 · Inventory – 650,000 · Prepaid expenses – 45,000 · Trade payables – 325,000 · Notes payable (due annually at 500,000 payable every March 31) – 1,000,000 · Accrued expenses – 40,000 How much total current liabilities should BT21 Co. present in its statement of financial position on December 31, 2021

The working capital of BT21 Co. on December 31, 2021 are presented below: · Cash on hand – 200,000 · Cash in bank – 108,000 · Notes receivable – 250,000 · Trade receivable – 600,000 · Inventory – 650,000 · Prepaid expenses – 45,000 · Trade payables – 325,000 · Notes payable (due annually at 500,000 payable every March 31) – 1,000,000 · Accrued expenses – 40,000 How much total current liabilities should BT21 Co. present in its statement of financial position on December 31, 2021

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter7: Financial Activities

Section: Chapter Questions

Problem 5QE

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The working capital of BT21 Co. on December 31, 2021 are presented below:·        Cash on hand – 200,000·        Cash in bank – 108,000·        Notes receivable – 250,000·        Trade receivable – 600,000·        Inventory – 650,000·        Prepaid expenses – 45,000·        Trade payables – 325,000·        Notes payable (due annually at 500,000 payable every March 31) – 1,000,000·        Accrued expenses – 40,000How much total current assets should BT21 Co. present in its statement of financial position on December 31, 2021?
For purposes of starting the working capital of Jay Trading on December 31, 2021, the following data are submitted: Cash on Hand and in Bank P  610,000 Petty Cash 6,000 Notes payable 500,000 Accounts Receivable 1,200,000 Merchandise Inventory 1,300,000 Accrued Expenses 90,000 Accounts Payable 650,000 Notes Receivable (collectible annually at P1,000,000 every May 31) 2,000,000 Unearned Rent Income 80,000 How much total current assets should be presented on the statement of financial position of Jay Trading on December 31, 2021?
For purposes of starting the working capital of Jay Trading on December 31, 2021, the following data are submitted: Cash on Hand and in Bank P  610,000 Petty Cash 6,000 Notes Receivable 500,000 Accounts Receivable 1,200,000 Merchandise Inventory 1,300,000 Accrued Expenses 90,000 Accounts Payable 650,000 Notes Payable (due annually at P1,000,000 every May 31) 2,000,000 Unearned Rent Income 80,000 How much total current liabilities should Jay Trading present in its statement of financial position on December 31, 2021?
VKS Company’s “cash count” as of December 31, 2021, is composed of the following:· Cash on Hand- P500,000· Demand Deposit- P2,000,000· Time Deposit, 30 days- P1,000,000· NSF Check of customer- P40,000· Money market placement (due June 30, 2022)- P1,500,000· Savings Deposit in a closed bank- P100,000· IOU from employee- P20,000· Pension Fund- P3,000,000· Petty Cash Fund- P10,000· Customer’s Check dated January 1, 2022- P50,000· Customer’s Check outstanding for 18 months- P40,000· Unused credit line- P500, 000 Additional information:a. Check of P200, 000 in payment of accounts payable was recorded on December 31, 2021 but mailed to suppliers on January 5, 2022.b. Check of P100, 000 dated January 15, 2022, in payment of accounts payable was recorded and mailed on December 31, 2021.c. The company uses the calendar year. The Cash Receipt Journal was held open until January 15, 2022, during which time P400, 000 was…
11. MELON Company’s “cash count” as of December 31, 2021, is composed of the following:· Cash on Hand- P500,000· Demand Deposit- P2,000,000· Time Deposit, 30 days- P1,000,000· NSF Check of customer- P40,000· Money market placement (due June 30, 2022)- P1,500,000· Savings Deposit in a closed bank- P100,000· IOU from employee- P20,000· Pension Fund- P3,000,000· Petty Cash Fund- P10,000· Customer’s Check dated January 1, 2022- P50,000· Customer’s Check outstanding for 18 months- P40,000· Unused credit line- P500, 000 Additional information:a. Check of P200, 000 in payment of accounts payable was recorded on December 31, 2021 but mailed to suppliers on January 5, 2022.b. Check of P100, 000 dated January 15, 2022, in payment of accounts payable was recorded and mailed on December 31, 2021.c. The company uses the calendar year. The Cash Receipt Journal was held open until January 15, 2022, during which time P400, 000 was…
1. San Company reported the following items on December 31, 2022:Treasury bills – 7 months maturity P 150,000Treasury bills – 2 months maturity 75,000Bank A – demand deposit 67,500Undeposited customer check 26,000Currency and coins on hand 2,900Savings deposit – for plant expansion 2,000,000Bank B – demand deposit 100,000The demand deposit in Bank B represents a 20% compensating balance for a P1,000,000 loan with thebank. Victoria may not withdraw the balance until the loan is repaid in 2025. What amount of cash andcash equivalents should Victoria report on December 31, 2022?A. 171,400 C. 421,400B. 321,400 D. 271,400
Stern Corporation borrowed $10 million cash on September 1, 2021, to provide additional working capital for the year's production. Stern issued a 6-month, 10% promissory note to Second State Bank. Interest on the note is payable at maturity. Each firm uses the calendar year as the fiscal year. 1. Prepare all journal entries from issuance to maturity for Stern Corporation.2. Prepare all journal entries from issuance to maturity for Second State Bank.
Old Bank started its first day of operations (11 March, 2021) with $6 million in capital. $100 million in checkable deposits is received. The bank issues a $30 million commercial loan and another $30 million in mortgages. (a) If required reserves are 8%, what does the bank balance sheets look like?
The following are the account balances for Nguyen Ltd as at 31st December 2018 Mortgage $ 210,000.00 Inventory $ 60,000.00 Owners Equity $ 360,000.00 Investments (Shares) $ 11,000.00 Plant (net) $ 61,000.00 Land and Building $ 327,629.00 Accounts Payable $ 31,000.00 Cash at Bank $ 5,000.00 Accounts Receivable $ 136,371.00 Nguyen Ltd wants budgets prepared for the next six months. The expected credit sales for the six months ending 30th June 2019 (there are no cash sales) are as follows: Estimated Sales (units) Jan Feb March April May June July Assuming poor Market 15,000.00 10,000.00 8,000.00 7,000.00 10,000.00 10,000.00 10,000.00 Accounts Receivable are collected in the following pattern: 60% of accounts are settled in the first month following the month of sale 3% discount will be available to 25% of those paying…
Pepper, Inc. had the following receivable financing transactions in 2021:a) At the beginning of November, Pepper, Inc. assigned P2,000,000 out of its P10,000,000 outstanding accounts receivables to Metrobank in consideration of a P1,500,000, 12% loan. Metrobank charged the company 5% of the loan principal as service charge. By the end of November, Pepper collected P600,000 cash from the assigned accounts net of a P50,000 sales discount. Also, by the end of November, Pepper accepted from customers merchandise originally invoiced at P60,000 as returns.By the end of December, Pepper collected another P700,000 from the assigned accounts after P40,000 sales discount. The company wrote-off P80,000 of the assigned accounts as worthless.The agreement with Metrobank calls for monthly remittance of customer collections for the month. The collections will cover both interest and loan principal.b) Also, at the beginning of November, Pepper, Inc. factored another P500,000 of its accounts…
With the following information, fill in the bank given using the specified format. (For example: 40 days) Days of working capital is _______ Annual Sales Revenue $3,650,000 Accounts Payable 300,000 Accounts Receivable 400,000 Cash 35,000 Mortgage 95,000 Equipment 200,000 Short-term Loan 100,000 Goodwill 75,000 Inventory 500,000
On June 30, 2018, Munoz Company’s total current assets were $503,500 and its total current liabilities were $273,000. On July 1, 2018, Munoz issued a short-term note to a bank for $39,400 cash. Required Compute Munoz’s working capital before and after issuing the note. Compute Munoz’s current ratio before and after issuing the note. (Round your answers to 2 decimal places.)