Compute cost of goods sold for 2013- compute net sales


George Bailey Corporation experienced a fire on December 31, 2013, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following balances.

 

December 31, 2013

December 31, 2012

Cash

$ 30,000

$ 10,000

Receivables (net)

72,500

126,000

Inventory

200,000

180,000

Accounts payable

50,000

90,000

Notes payable

30,000

60,000

Common stock, $100 par

400,000

400,000

Retained earnings

113,500

101,000

Additional information:
1. The inventory turnover is 3.5 times.
2. The return on common stockholders' equity is 24%. The company had no additional paid-in capital.
3. The receivables turnover is 8.8 times.
4. The return on assets is 20%.
5. Total assets at December 31, 2012, were $605,000.

Instructions
Compute the following for George Bailey Corporation.
(a) Cost of goods sold for 2013.

(b) Net sales (credit) for 2013.

(c) Net income for 2013.

(d) Total assets at December 31, 2013.

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Financial Management: Compute cost of goods sold for 2013- compute net sales
Reference No:- TGS01607180

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