Student Name: +
–
NE
Amount % Amount %
103,500$ 23.0% «- Correct! 70,400$ 17.6% «- Correct!
46,800 10.4% «- Correct! 32,000 8.0% «– Correct!
44,550 9.9% «- Correct! 71,200 17.8% «– Correct!
7,200 1.6% «- Correct! 3,600 0.9% «- Correct!
54,900 12.2% «- Correct! – 0.0% «- Correct!
117,450 26.1% «- Correct! 141,600 35.4% «- Correct!
Land
Problem 12-03
McGraw-Hill/Irwin
Instructor
2021
December 31, 2021
Balance Sheet
SPORTS UNLIMITED
Requirement 1:
2020
Accounts receivable
Inventory
Prepaid rent
Long-Term Assets:
Assets
Current Assets:
Cash
Investment in bonds
106,200 23.6% «- Correct! 102,000 25.5% «- Correct!
7,200 1.6% «- Correct! 3,600 0.9% «- Correct!
12,150 2.7% «- Correct! 10,000 2.5% «– Correct!
138,150 30.7% «- Correct! 127,600 31.9% «- Correct!
144,000 32.0% «- Correct! 144,000 36.0% «- Correct!
118,350 26.3% «- Correct! 68,000 17.0% «– Correct!
Notes payable
Stockholders’ Equity
Common stock
Retained earnings
Current Liabilities:
Accounts payable
Interest payable
Income tax payable
Long-Term Liabilities
Equipment
Accumulated depreciation
Liabilities and Stockholders’ Equity
Student Name: +
–
NE
Problem 12-03
McGraw-Hill/Irwin
Instructor
2021 2020 Amount %
103,500$ 70,400$ 33,100$ 47.0% «- Correct!
46,800 32,000 14,800 46.3% «- Correct!
44,550 71,200 (26,650) -37.4% «- Correct!
7,200 3,600 3,600 100.0% «- Correct!
Year
Prepaid rent
Current Assets:
Cash
Accounts receivable
Inventory
Assets
Requirement 2:
Increase/Decrease
SPORTS UNLIMITED
Balance Sheet
December 31, 2021
54,900 – 54,900 0.0% «- Correct!
7,200 3,600 3,600 100.0% «- Correct!
12,150 10,000 2,150 21.5% «- Correct!
Stockholders’ Equity
Common stock
Retained earnings
Interest payable
Income tax payable
Liabilities and Stockholders’ Equity
Long-Term Liabilities
Notes payable
Accumulated depreciation
Current Liabilities:
Accounts payable
Long-Term Assets:
Investment in bonds
Equipment
2021 2020
103,500$ 70,400$
Retained earnings
Income tax payable
Long-Term Liabilities:
Notes payable
Common stock
30,150$ 46,800$
Current Liabilities:
Accounts payable
Balance Sheets
For the Years Ended December 31, 2021 and 2020
SPORTS UNLIMITED
Given Data P12-03:
Liabilities and Stockholders’ Equity
Assets
Current Assets:
Cash
Less: Accumulated depreciation
Accounts receivable
Inventory
Prepaid rent
Long-Term Assets:
Investment in bonds
Equipment
Student Name:
Class:
3,086,000
80,500 38.3 times «- Correct!
415,000
104,000 4.0 to 1 «- Correct!
287,000
104,000 2.8 to 1 «- Correct!
399,000
217,000
20,000 10.9 times «- Correct!
Times interest earned ratio
=
Debt to equity ratio
=
Instructor
VIRTUAL GAMING SYSTEMS
=
Acid-test ratio
=
Problem 12-04
McGraw-Hill/Irwin
Risk Ratios:
Receivable turnover ratio
Current ratio
=
1,960,000
=
Average collection period
=
Inventory turnover ratio
=
Average days in inventory
3,086,000$
1,960,000
1,126,000
868,000$
2021 2020
Inventory
Prepaid rent
Long-Term Assets:
Investment in bonds
Land
Equipment
Less: Accumulated depreciation
196,000$ 154,000$
91,000 70,000
Stockholders’ Equity:
Common stock
Retained earnings
Income tax payable
Long-Term Liabilities:
Notes payable
76,000$ 91,000$
8,000 4,000
Current Liabilities:
Accounts payable
Interest payable
Liabilities and Stockholders’ Equity
Assets
Current Assets:
Cash
Accounts receivable
VIRTUAL GAMING SYSTEMS
December 31
Balance Sheets
VIRTUAL GAMING SYSTEMS
Income Statement
For the Year Ended December 31, 2021
Gross profit
Cost of goods sold
Net sales
Given Data P12-04:
Operating expenses
Expenses:
Income tax expense
Interest expense
Loss on sale of land
Depreciation expense
Total expenses
Student Name:
Class:
3,086,000
80,500 38.3 times «- Correct!
415,000
104,000 4.0 to 1 «- Correct!
461,000
186,000 2.5 to 1 «- Correct!
Debt to equity ratio
=
=
2021
2022
1,126,000
3,086,000 36.5% «- Correct!
1,070,000
3,560,000 30.1% «- Correct!
2021
2022
Profit margin
=
=
=
2021
Return on assets
Receivables turnover ratio
Current ratio
2021
2022
2021
VIRTUAL GAMING SYSTEMS
Requirement 1: Risk Ratios
=
=
=
=
=
Problem 12-06
McGraw-Hill/Irwin
Instructor
Gross profit ratio
Requirement 2: Profitability Ratios
2022
2021
90,500 39.3 times «- Correct!
=
Inventory turnover ratio
2022
2021
2022
=
=
Student Name:
Class:
Problem 12-06
McGraw-Hill/Irwin
Instructor
33,000
3,560,000 0.9% «- Correct!
3,086,000
870,100 3.5 times «- Correct!
2021
2022
Asset turnover
=
=
2022
=
2022 2021
3,560,000$ 3,086,000$
2,490,000 1,960,000
1,070,000 1,126,000
2022 2021 2020
Investment in bonds
Land
Equipment
Less: Accumulated depreciation
Inventory
Prepaid rent
Long-Term Assets:
216,000$ 196,000$ 154,000$
90,000 91,000 70,000
Stockholders’ Equity:
Common stock
Retained earnings
Long-Term Liabilities:
Notes payable
161,000$ 76,000$ 91,000$
12,000 8,000 4,000
13,000 20,000 15,000
Given Data P12-06:
Current Liabilities:
Accounts payable
Interest payable
Income tax payable
Liabilities and Stockholders‘ Equity
December 31
Assets
Current Assets:
Cash
Accounts receivable
Balance Sheets
VIRTUAL GAMING SYSTEMS
For the Year Ended December 31
Income Statements
VIRTUAL GAMING SYSTEMS
Net Sales
Cost of goods sold
Gross profit
Interest expense
Income tax expense
Total expenses
Depreciation expense
Loss on sale of land
Operating expenses