Reference no: EM133144845
Question - The statement of financial position of Trend, Inc. is presented below. These are the only accounts in Trend's statement of financial position. Amounts indicated by question mark (?) can be calculated from the additional information given.
Assets:
Cash 25,000
Accounts receivable (net) ?
Inventory ?
Property, plant and equipment (net) 294,000
Total 432,000
Liabilities and Stockholders' Equity
Accounts payable (trade) ?
Income taxes payable (current) 25,000
Long-term debt ?
Common stock 300,000
Retained earnings ?
Total ?
Additional Information:
Current ratio (at year end) 1.5 to 1
Total liabilities divided by total stockholders' equity 0 .8
Inventory turnover based on sales and ending inventory 15 times
Inventory turnover based on cost of goods sold and ending inventory 10.5 times
Gross margin for the year P315,000
Required -
1. What was Trend's balance in trade accounts payable at year-end?
2. What was Trend's balance in retained earnings at year-end?
3. What was Trend's balance in the inventory account at year-end?
4. The balance of Accounts Receivables as at the end of the year is?
5. The balance of Long-term debt as at the end of the year is?