Home / Questions / Given the information below for John Doe Inc: How much is the firm’s net working capital
Given the information below for John Doe Inc:
How much is the firm’s net working capital and what is the debt ratio?
Complete a common-sized income statement, a common-sized balance sheet, and a statement of cash flows for 2010. Interpret your results.
John Doe Balance Sheet at 12/31/2009 and 12/31/2010
ASSETS
2009 2010
Cash
$ 200
$ 150
Accounts receivable
450
425
Inventory
550
625
Current assets
$ 1200
$ 1200
Plant and equipment
$ 2200
$ 2600
Less accumulated depreciation
(1000)
(1200)
Net plant and equipment
$ 1200
$ 1400
Total assets
$ 2400
$ 2600
LIABILITIES AND OWNERS’ EQUITY
2009 2010
Accounts payable
$ 200
$ 150
Notes payable- current (9%)
0
150
Current liabilities
$ 200
$ 300
Bonds
$ 600
$ 600
Owners’ equity
Common stock
$ 900
$ 900
Retained earnings
700
800
Total owners’ equity
$ 1600
$ 1700
Total liabilities and owners’ equity
$ 2400
$ 2600
John Doe Income Statement for Years Ending 12/31/2009 and 12/31/2010
2009 2010
Sales
$ 1200
$ 1450
Cost of goods sold
700
850
Gross profit
$ 500
$ 600
Selling, general, and administrative expenses
$ 30
$ 40
Depreciation
$ 220
$ 250
$ 200
$ 240
Operating income
$ 250
$ 360
Interest expense
$ 50
64
Net income before taxes
$ 200
$ 296
Taxes (40%)
80
118
Net income
$ 120
$ 178
|
Cash |
$ 200 |
$ 150 |
|
Accounts receivable |
450 |
425 |
|
Inventory |
550 |
625 |
|
Current assets |
$ 1200 |
$ 1200 |
|
Plant and equipment |
$ 2200 |
$ 2600 |
|
Less accumulated depreciation |
(1000) |
(1200) |
|
Net plant and equipment |
$ 1200 |
$ 1400 |
|
Total assets |
$ 2400 |
$ 2600 |
Dec 04 2019 View more View Less
I am so lost on this. I am making a B in this class but I can not seem to get this project completed. Please help.ACC-120Project â Financial AccountingThis assignment s...
Jun 23 2021Which of the following statements is true?a. Productive inefficiency implies that it is possible to produce more of one good and no less of another, but only if additiona...
Apr 26 2021Hanlin Company uses the periodic inventory system to account for inventories. Information related to Hanlin Company's inventory at January 31 is given below:January1B...
Mar 29 2020Resistance to Rodenticides in Wild Rat PopulationsBeginning in 1990, rat infestations in northwestern Germany started to intensify despite continuing use of rat poisons. ...
Jul 09 2021Describe the typical processes involved in project authorisation for a project of moderate complexity, including the role and position of the authorising person
Apr 15 2020Choose the correct answer.Please submit the report to (him or me, he or I) before May 1.
Jun 18 2021When using the equity method to account for long-term investments, an adjusting entry is made on the date of the balance sheet:A) only if market exceeds costB) only if ma...
Dec 24 2019Sulfuric acid is needed in a lead storage battery. A 25.00-mL sample of "battery acid" taken from a functioning battery requires 53.7 mL of 2.552 M NaOH for complete neut...
Jul 20 2021evenue and cash receipts journals; accounts receivablesubsidiary and general ledgers Transactions related to revenue andcash receipts completed by Crowne Business Service...
Aug 13 2020What explains the key difference between a bomb calorimeter and a coffee cup calorimeter?
Jul 22 2021