FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
19th Edition
ISBN: 9781119493624
Author: Kimmel
Publisher: WILEY
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The following selected account balances were taken from ABC Company'sgeneral ledgers for 2025:January 1, 2025 December 31, 2025 Accounts payable 49,000 53,000 Cash 35,000 38,000Common stock 46,000 76,000Land 27,000 64,000 Notes payable 45,000 40,000Retained earnings ? 29,000The following information was taken from ABC Company's 2025 incomestatement:Total revenues 500,000Total expenses <430,000>Net income 70,000The following information was taken from ABC Company's 2025 cashflow statement:Net cash flow from operating activities 93,000Net cash flow from investing activities <60,000>Net cash flow from financing activities <30,000>Net change in cash 3,000Calculate the balance in the retained earnings account at January 1, 2025.
The following items are reported on a company's balance sheet:
Cash
$227,700
Marketable securities
109,000
Accounts receivable
235,700
Inventory
197,500
Accounts payable
293,700
Round your answers to two decimal places.
a. Determine the current ratio.
b. Determine the quick ratio.
The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Dux Company. Additional information from Dux's accounting records is provided also.
DUX COMPANY
Comparative Balance Sheets
December 31, 2024 and 2023
($ in thousands)
2024
2023
Assets
Cash
$ 121
$ 40
Accounts receivable
43
71
Less: Allowance for uncollectible accounts
(5)
(4)
Dividends receivable
4
3
Inventory
100
95
Long-term investment
54
50
Land
95
85
Buildings and equipment
162
200
Less: Accumulated depreciation
(38)
(80)
$ 536
$ 460
Liabilities
Accounts payable
$ 46
$ 82
Salaries payable
6
9
Interest payable
7
2
Income tax payable
5
6
Notes payable
10
0
Bonds payable
80
50
Less: Discount on bonds
(5)
(6)
Shareholders' Equity
Common stock
210
200
Paid-in capital—excess of par
24
20
Retained earnings
163
97
Less: Treasury stock
(10)
0
$ 536
$ 460
DUX COMPANY
Income Statement
For the Year…
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