Superior Hardwood Company distributes hardwood products to small furniture manuf

Question

Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firm's worksheet for the year ended December 31, 2019 23,800 500 11,500 93,000 Cash Petty Cash Fund Notes Receivable, due 2020 Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Warehouse Supplies office Supplies Prepaid Insurance Land Building Accumulated Depreciation-Building Warehouse Equipment Aceumulated Depreciation-Warehouse Equipment Delivery Equipment Accunulated Depreciation-Delivery Equipment office Equipment Accumulated Depreciation-office Equipment Notes Payable, due 2020 Accounts Payable Interest Payable Mortgage Payable Loans Payable, Long-term Charles Ronie, Capital (Jan1) Charles Ronie, Drawing Income Summary Sales Sales Returns and Allowances Interest Income Purchases Freight In Purchases Returns and Allovances Purchases Discounts warehouso ?agen Expense 5,700 231,000 2,830 1,390 9,300 43,000 175,000 35,500 49,500 23,500 52,200 16,500 19,000 11,100 19,900 38,700 550 9,500 15,500 443,260 126,700 231,000 679,000 241,000 17,900 764,000 1,550 3,500 8,140 10,860 196,600

Explanation / Answer

1.

2.

3.

Analyze:

Current ratio = Current assets/Current liabilities = $367620/$59150 = 6.22

SUPERIOR HARDWOOD COMPANY Income Statement For the Year Ended December 31, 2019 Operating revenue Sales 1679000 Less: Sales returns and allowances 17900 Net sales 1661100 Cost of goods sold Merchandise inventory, January 1, 2019 241000 Purchases 764000 Freight in 13500 Delivered cost of purchases 777500 Purchases returns and allowances 8140 Purchase discounts 10860 19000 Net delivered cost of purchases 758500 Total merchandise available for sale 999500 Merchandise inventory, December 31, 2019 231000 Cost of goods sold 768500 Gross profit on sales 892600 Operating expenses Warehouse expenses Warehouse wages expense 196600 Warehouse supplies expense 6800 Depreciation expense-warehouse equipment 5500 Total warehouse expenses 208900 Selling expenses Salaries expense-sales 266200 Travel and entertainment expense 21200 Delivery wages expense 60030 Depreciation expense-delivery equipment 9500 Total selling expenses 356930 General and administrative expenses Salaries expense-office 70300 Office supplies expense 3700 Insurance expense 5900 Utilities expense 8990 Telephone expense 6220 Payroll taxes expense 57500 Property taxes expense 5300 Uncollectible accounts expense 5500 Depreciation expense-building 8700 Depreciation expense-office equipment 3700 Total general and administrative expenses 175810 Total operating expenses 741640 Income from operations 150960 Other income Interest income 1550 Other expenses Interest expense 7900 Net nonoperating expense 6350 Net income for year 144610

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.