2016 2015 Assets: Cash Accounts receivable Inventories $ 170,000 700,000 1,400,0

Question

2016 2015 Assets: Cash Accounts receivable Inventories $ 170,000 700,000 1,400,000 $2,270,000 5,600,000 9,004,000 7,870,000 $ 200,000 804,000 Total current assets Net fixed assets Total assets 2,000,000 $3,004,000 6,000,000 Liabilities and equity: Accounts payable Notes payable to bank $1,090,000 1,800,000 3,000,000 2,890,000 2,400,000 2,000,000 580,000 3,604,000$2,580,000 $9,004,000 $7,870,000 $1,400,000 1,600,000 Total current liabilities Long-term debt Common stock Retained earnings 2,400,000 3,000,000 664,000 Total common equity Total liabilities and equity

Explanation / Answer

Requirement 1 Net income = Retained earnings 2016 - Retained earnings 2015 Net income = 664,000-580,000 Net income = 84,000 Requirement 2 Firm did not borrow or repay any loans for 2016 Reason : No change in the longterm debt Requirement 3 Net operating working Capital = Current Assets -Current Liabilites = 3,004,000-3,000,000 = 4,000

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

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