USE THE DATA BELOW TO ANSWER QUESTIONS 29. 30 AND 31 - THE DATA WILL BE REPEATED

Question

USE THE DATA BELOW TO ANSWER QUESTIONS 29. 30 AND 31 - THE DATA WILL BE REPEATED FOR EACH OF THE QUESTIONS. BUT IT IS IDENTICAL FOR EACH. Given the financial data and ratios listed below for the Atlanta Company, determine what Atlanta Company recorded as Notes payable on its 2012 balance sheet. (Record your answer without a dollar sign, without commas, and if the answer is a negative number, use the minus sign followed by the number with no spaces between the minus sign and the number - thus record $3.143 as 3143 or negative 18 as -18).

Explanation / Answer

SOLUTION: 600 CURRENT RATIO= CA/CL CA= CASH+ACCOUNT RECIEVABLE+INVENTORY 250+1000+1500=2750 2.5=2750/CL CL=1000 CL=ACCOUNT PAYABLE-NOTES PAYABLE NOTES PAYBLE=1100-500=600 WORKING NOTES: BASED ON QUESTION ACCOUNT RECIEVABLE= SALES*45/100 8000*45/360=1000 INVENTORY T/O=COGS/SALE COGS= SALE-GP=10000-4000=6000 AVG INVENTORY=6000/4=1500 C.S=1500 COGS=OS+P-C.S P=6000 ACCOUNT PAYABLE=6000*30/360=500

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