accounting

Selected year- end financial statements of Cadet Corporation follow. ( All sales were on credit; selected balance sheet amounts at December 31, 2008 (prior year – you will need this to calculate certain averages), were inventory, $ 56,900; total assets, $ 219,400; common stock, $ 85,000; and retained earnings, $ 52,348.)

CADET CORPORATION
Income Statement
For Year Ended December 31, 2009

Sales . . . . . . . . . . . . . . . . . . . $ 456,600
Cost of goods sold . . . . . . . . 297,450
Gross profit . . . . . . . . . . . . . 159,150
Operating expenses . . . . . . . . 99,400
Interest expense . . . . . . . . . . 3,900
Income before taxes . . . . . . . 55,850
Income taxes . . . . . . . . . . . . . 22,499
Net income . . . . . . . . . . . . . . $ 33,351

CADET CORPORATION
Balance Sheet
December 31, 2009

Assets Liabilities and Equity
Cash . . . . . . . . . . . . . . . . . . . . . . $ 20,000 Accounts payable . . . . . . . . . . . .. . $ 21,500 Short- term investments . . . . . . . . . 8,200 Accrued wages payable . . . . . . . . . . 4,400 Accounts receivable, net . . . . . . . . 29,400 Income taxes payable . . . . . . . . . . . . 3,700 Notes receivable ( trade)* . . . . . . . . 7,000 Long- term note payable …… . 67,400
Inventory . . . . . . . . . . 34,150
Prepaid expenses . . . . . . . . . . . . . . 2,700 Common stock . . . . . . . . . .. . . 85,000 Plant assets, net . . . . . . . . . . . . . . . 147,300 Retained earnings . . . . . . . . . . . . . . 66,750 Total assets . . . . . . . . . . . . . . . . . . 248,750 Total liabilities and equity . . . . . . $ 248,750

On the next page, compute the following: ( 1) current ratio, ( 2) acid- test ratio, ( 3) days’ sales uncollected, ( 4) inventory turnover, ( 5) days’ sales in inventory, ( 6) debt- to- equity ratio, ( 7) times interest earned, ( 8) profit margin ratio, ( 9) total asset turnover,
( 10) return on total assets, and ( 11) return on common stockholders’ equity. (12 points).

asked by Renee
  1. prepare the appropriate adjusting entry for the year Rent of $24,000 for a full year was paid on August 31,2011

    posted by tony

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