Student Name:
Amount % Amount %
103,500$ 23.0% «- Correct! 70,400$ 17.6% «- Correct!
46,800 10.4% «- Correct! 32,000 8.0% «- Correct!
Interest payable
Income tax payable
Long-Term Liabilities
Notes payable
Stockholders’ Equity
Common stock
Retained earnings
30,150$ 6.7% «- Correct! 46,800$ 11.7% «- Correct!
2017
Accounts receivable
Liabilities and Stockholders’ Equity
Assets
Current Assets:
Cash
Problem 12-03
McGraw-Hill/Irwin
Instructor
2018
December 31, 2018
Balance Sheets
SPORTS UNLIMITED
Requirement 1:
Current Liabilities:
Accounts payable
Inventory
Prepaid rent
Long-Term Assets:
Investment in bonds
Land
Equipment
Accumulated depreciation
Student Name:
Problem 12-03
McGraw-Hill/Irwin
Instructor
2018 2017 Amount %
103,500$ 70,400$ 33,100$ 47.0% «- Correct!
46,800 32,000 14,800 46.3% «- Correct!
Stockholders’ Equity
Common stock
Retained earnings
Income tax payable
Long-Term Liabilities
Notes payable
30,150$ 46,800$ (16,650)$ -35.6% «- Correct!
7,200 3,600 3,600 100.0% «- Correct!
Increase/Decrease
SPORTS UNLIMITED
Balance Sheets
December 31, 2018
Assets
Requirement 2:
Current Assets:
Cash
Accounts receivable
Year
Interest payable
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable
Long-Term Assets:
Investment in bonds
Land
Equipment
Inventory
Accumulated depreciation
Prepaid rent
2018 2017
Equipment
Less: Accumulated depreciation
103,500$ 70,400$
54,900 –
117,450 141,600
Retained earnings
Interest payable
Income tax payable
Long-Term Liabilities:
Notes payable
Stockholders’ Equity:
Common stock
30,150$ 46,800$
Balance Sheets
For the Years Ended December 31, 2018 and 2017
SPORTS UNLIMITED
Liabilities and Stockholders’ Equity
Assets
Current Assets:
Cash
Long-Term Assets:
Investment in bonds
Land
Current Liabilities:
Accounts payable
Accounts receivable
Inventory
Prepaid rent
Student Name:
Class:
3,086,000
80,500 38.3 times «- Correct!
415,000
104,000 4.0 to 1 «– Correct!
Average days in inventory
Current ratio
=
=
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
=
Acid-test ratio
=
Problem 12-04
McGraw-Hill/Irwin
Risk Ratios:
Receivable turnover ratio
Instructor
VIRTUAL GAMING SYSTEMS
=
1,960,000
Inventory turnover ratio
=
Average collection period
=
3,086,000$
1,960,000
1,126,000
2018 2017
Accounts receivable
Inventory
Prepaid rent
Long-Term Assets:
Investment in bonds
Land
Equipment
Less: Accumulated depreciation
196,000$ 154,000$
Stockholders’ Equity:
Common stock
Retained earnings
Income tax payable
Long-Term Liabilities:
Notes payable
76,000$ 91,000$
8,000 4,000
Expenses:
VIRTUAL GAMING SYSTEMS
December 31
Balance Sheets
VIRTUAL GAMING SYSTEMS
Income Statement
For the Year Ended December 31, 2018
Gross profit
Cost of goods sold
Net sales
Liabilities and Stockholders’ Equity
Assets
Current Assets:
Cash
Current Liabilities:
Accounts payable
Interest payable
Total expenses
Operating expenses
Income tax expense
Interest expense
Loss on sale of land
Depreciation expense
Student Name:
Class:
3,086,000
80,500 38.3 times «- Correct!
415,000
104,000 4.0 to 1 «– Correct!
186,000 2.5 to 1 «– Correct!
2018
2019
=
=
=
Debt to equity ratio
2019
1,126,000
3,086,000 36.5% «- Correct!
3,560,000 30.1% «- Correct!
2018
=
=
=
2019
Return on assets
2019
Problem 12-06
McGraw-Hill/Irwin
Instructor
=
=
VIRTUAL GAMING SYSTEMS
Requirement 1: Risk Ratios
=
Receivables turnover ratio
Current ratio
2018
2018
Gross profit ratio
Requirement 2: Profitability Ratios
2018
90,500 39.3 times «- Correct!
=
=
=
Inventory turnover ratio
2019
2018
2019
Student Name:
Class:
Problem 12-06
McGraw-Hill/Irwin
Instructor
139,000
3,086,000 4.5% «- Correct!
=
2018
Profit margin
3,560,000 0.9% «- Correct!
=
=
=
2019
2018
2019
Asset turnover
2019 2018
3,560,000$ 3,086,000$
2,490,000 1,960,000
2019 2018 2017
Inventory
Prepaid rent
Long-Term Assets:
Investment in bonds
Land
Equipment
Less: Accumulated depreciation
216,000$ 196,000$ 154,000$
90,000 91,000 70,000
Stockholders’ Equity:
Common stock
Retained earnings
Income tax payable
Long-Term Liabilities:
Notes payable
161,000$ 76,000$ 137,200$
12,000 8,000 4,000
Net Sales
Cost of goods sold
For the Year Ended December 31
Income Statements
VIRTUAL GAMING SYSTEMS
Current Assets:
Cash
Accounts receivable
Balance Sheets
VIRTUAL GAMING SYSTEMS
December 31
Assets
Liabilities and Stockholders’ Equity
Given Data P12-06:
Current Liabilities:
Accounts payable
Interest payable
Depreciation expense
Loss on sale of land
Gross profit
Operating expenses
Interest expense
Income tax expense
Total expenses