Financing Deficit
Garlington Technologies Inc.'s 2016 financial statements are
shown below:
Balance Sheet as of December...
Financing Deficit
Garlington Technologies Inc.'s 2016 financial statements are
shown below:
Balance Sheet as of December 31, 2016
Cash
$ 180,000
Accounts payable
$ 360,000
Receivables
360,000
Notes payable
156,000
Inventories
720,000
Line of credit
0
Total current assets
$1,260,000
Accruals
180,000
Fixed assets
1,440,000
Total current liabilities
$ 696,000
Common stock
1,800,000
Retained earnings
204,000
Total assets
$2,700,000
Total liabilities and equity
$2,700,000
Income Statement for December 31, 2016
Sales
$3,600,000
Operating costs
3,279,720
EBIT
$ 320,280
Interest
18,280
Pre-tax earnings
$ 302,000
Taxes...
Financing Deficit Garlington Technologies Inc.'s 2016 financial
statements are shown below: Balance Sheet as of December...
Financing Deficit Garlington Technologies Inc.'s 2016 financial
statements are shown below: Balance Sheet as of December 31, 2016
Cash $ 180,000 Accounts payable $ 360,000 Receivables 360,000 Notes
payable 156,000 Inventories 720,000 Line of credit 0 Total current
assets $1,260,000 Accruals 180,000 Fixed assets 1,440,000 Total
current liabilities $ 696,000 Common stock 1,800,000 Retained
earnings 204,000 Total assets $2,700,000 Total liabilities and
equity $2,700,000 Income Statement for December 31, 2016 Sales
$3,600,000 Operating costs 3,279,720 EBIT $ 320,280 Interest 18,280...
Problem 12-09
Financing Deficit
Garlington Technologies Inc.'s 2016 financial statements are
shown below:
Balance Sheet as...
Problem 12-09
Financing Deficit
Garlington Technologies Inc.'s 2016 financial statements are
shown below:
Balance Sheet as of December 31, 2016
Cash
$ 180,000
Accounts payable
$ 360,000
Receivables
360,000
Notes payable
156,000
Inventories
720,000
Line of credit
0
Total current assets
$1,260,000
Accruals
180,000
Fixed assets
1,440,000
Total current liabilities
$ 696,000
Common stock
1,800,000
Retained earnings
204,000
Total assets
$2,700,000
Total liabilities and equity
$2,700,000
Income Statement for December 31, 2016
Sales
$3,600,000
Operating costs
3,279,720
EBIT
$ 320,280
Interest
18,280
Pre-tax earnings...
Garlington Technologies Inc.'s 2019 financial statements are
shown below:
Income Statement for December 31, 2019
Sales...
Garlington Technologies Inc.'s 2019 financial statements are
shown below:
Income Statement for December 31, 2019
Sales
$4,000,000
Operating costs
3,200,000
EBIT
$ 800,000
Interest
120,000
Pre-tax earnings
$ 680,000
Taxes (25%)
170,000
Net income
510,000
Dividends
$ 190,000
Balance Sheet as of December 31, 2019
Cash
$ 160,000
Accounts payable
$ 360,000
Receivables
360,000
Line of credit
0
Inventories
720,000
Accruals
200,000
Total CA
$1,240,000
Total CL
$ 560,000
Fixed assets
4,000,000
Long-term bonds
1,000,000
Total Assets
$5,240,000
Common stock
1,100,000
RE
2,580,000
Total L&E
$5,240,000...
Financing Deficit
Garlington Technologies Inc.'s 2019 financial statements are
shown below:
Income Statement for December 31,...
Financing Deficit
Garlington Technologies Inc.'s 2019 financial statements are
shown below:
Income Statement for December 31, 2019
Sales
$4,000,000
Operating costs
3,200,000
EBIT
$ 800,000
Interest
120,000
Pre-tax earnings
$ 680,000
Taxes (25%)
170,000
Net income
510,000
Dividends
$ 190,000
Balance Sheet as of December 31, 2019
Cash
$ 160,000
Accounts payable
$ 360,000
Receivables
360,000
Line of credit
0
Inventories
720,000
Accruals
200,000
Total CA
$1,240,000
Total CL
$ 560,000
Fixed assets
4,000,000
Long-term bonds
1,000,000
Total Assets
$5,240,000
Common stock
1,100,000
RE
2,580,000
Total...
Financing Deficit Garlington Technologies Inc.'s 2019 financial
statements are shown below:
Income Statement for December 31,...
Financing Deficit Garlington Technologies Inc.'s 2019 financial
statements are shown below:
Income Statement for December 31, 2019
Sales $4,000,000
Operating costs 3,200,000
EBIT $ 800,000
Interest 120,000
Pre-tax earnings $ 680,000
Taxes (25%) 170,000
Net income 510,000
Dividends $ 190,000
Balance Sheet as of December 31, 2019
Cash $ 160,000
Accounts payable $ 360,000
Receivables 360,000
Line of credit 0
Inventories 720,000
Accruals 200,000
Total CA $1,240,000
Total CL $ 560,000
Fixed assets 4,000,000
Long-term bonds 1,000,000
Total Assets $5,240,000...
Presented here are the comparative balance sheets of Hames Inc.
at December 31, 2020 and 2019....
Presented here are the comparative balance sheets of Hames Inc.
at December 31, 2020 and 2019. Sales for the year ended December
31, 2020, totaled $660,000.
HAMES INC.
Balance Sheets
December 31, 2020 and 2019
2020
2019
Assets
Cash
$
25,000
$
19,000
Accounts receivable
78,000
72,000
Merchandise inventory
103,000
99,000
Total current assets
$
206,000
$
190,000
Land
50,000
40,000
Plant and equipment
125,000
110,000
Less: Accumulated depreciation
(65,000
)
(60,000
)
Total assets
$
316,000
$
280,000
Liabilities...
LONG-TERM FINANCING NEEDED At year-end 2019,
total assets for Arrington Inc. were $1.8 million and accounts...
LONG-TERM FINANCING NEEDED At year-end 2019,
total assets for Arrington Inc. were $1.8 million and accounts
payable were $450,000. Sales, which in 2019 were $3.0 million, are
expected to increase by 25% in 2020. Total assets and accounts
payable are proportional to sales, and that relationship will be
maintained; that is, they will grow at the same rate as sales.
Arrington typically uses no current liabilities other than accounts
payable. Common stock amounted to $500,000 in 2019, and retained
earnings...
At year-end 2019, total assets for Arrington Inc. were $1.9
million and accounts payable were $360,000....
At year-end 2019, total assets for Arrington Inc. were $1.9
million and accounts payable were $360,000. Sales, which in 2019
were $2.30 million, are expected to increase by 15% in 2020. Total
assets and accounts payable are proportional to sales, and that
relationship will be maintained; that is, they will grow at the
same rate as sales. Arrington typically uses no current liabilities
other than accounts payable. Common stock amounted to $355,000 in
2019, and retained earnings were $455,000. Arrington...