10. Texas Communications, Corp., reported the following figures in its financial
ID: 2374082 • Letter: 1
Question
10. Texas Communications, Corp., reported the following figures in its financial
statements (amounts in thousands):
cash $3,600 cost of goods sold $21,000
total operating expenses 3,300 equipment, net 3,900
accounts payable 4,000 accrued liabilities 1,800
total stockholder equity 4,100 net sales revenue 29,000
long term notes payable 600 accounts receivable 2,600
inventory 400
Requirement
R1. Prepare the business's multi step income statement for the year ended May 31, 2011.
11. Review the data in problem #10.
requirement
R1 prepare texas communications classified balance sheet at may 31, 2011. use the report format.
12. refer to the Texas communications data in problems #10 and #11
requirement
R1 calculate the gross profit percentage and rate of inventory turnover for 2011. one year earlier, at May 31, 2010, Texas' inventory balance was $325.
Explanation / Answer
income statement net sales revenue 29000 - cost of goods sold 21000 gross margin = 8000 - operating expenses 3300 net revenue = 4700 balance sheet liabilities assets total stockholder equity 4,100 accounts payable 4,000 equipment, net 3,900 accrued liabilities 1,800 accounts receivable 2,600 long term notes payable 600 inventory 400 cash $3,600 gross profit turnover= gross profit/ sales=8000/29000=27.59%
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