For the Year ended December 31, 20X5
|Gain on sale of PPE (Property Plant & Equipment)||19,000|
|Cost of goods sold||360,000|
|Net income before income tax expense||136,000|
|Income tax expense||36,000|
|Net income after income tax expense||100,000|
PPE purchases during 20X5 were $735,000
Issuance of mortgage payable during 20X5 $226,000
All prepaid expenses at the beginning of the year expired during 20X5.
$5,000 was accrued for operating expenses at year end.
As at December 31
|Long term receivable from Dennis's Ltd.||26,000||-|
|Property, Plant and Equipment(PPE), net||1,087,000||525,000|
Please round up to 2 decimal places.
Please note that percentages may be represented in decimal format. For example, 12% is the same as 0.12. If you calculate 0.123 it is correct to round to 12%. If you calculate 0.127 then it is correct to round to 13%.
Bernie's Ltd current ratio at December 20X4 is:
Between 0.0 - 2.50
Between 2.51 - 3.50
Between 3.51 - 4.50
Between 4.51 - 5.50
Answer is “Between 3.51 - 4.50”
Current Assets = Cash + Accounts Receivable + Inventory +
Interest Receivable + Prepaids
Current Assets = $101,000 + $192,000 + $330,000 + $3,000 + $17,000
Current Assets = $643,000
Current Liabilities = Accounts Payable + Accrued Liabilities +
Current Liabilities = $137,000 + $7,000 + $12,000
Current Liabilities = $156,000
Current Ratio = Current Assets / Current Liabilities
Current Ratio = $643,000 / $156,000
Current Ratio = 4.12
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