Question

Financial data for Amazures, Inc. is given below. All figures are in dollars. Use this data to construct a Balance Sheet for the company for the year ending December 31, 2019 and use your constructed statement to answer the following 5 questions (i.e., 11 through 15). NOTE: Not every item in the list below belongs on the balance sheet - you have to use some given data to determine needed accounts for the balance sheet. However, other than what is listed and/or can be derived, there are no other accounts on Jade's balance sheet - use cash as a plug figure to balance the balance sheet. Accounts payable Accruals Accumulated depreciation Additional paid in capital Beginning of year inventory Common stock ($1.60 par value) Cost of goods sold Current portion of Long-term debt Gross accounts receivable Gross fixed assets Long-term debt (excluding current portion) Purchases Retained earnings Returns and allowances Short-term bank loan Cash 2,875,400 86,300 16,986,900 9,785,900 12,479,200 1,876,000 147,956,800 3,754,100 2,148,600 52,789,300 24,768,200 146,795,100 7,986,800 37,600 547,600 ???

1. What did Amazures record as Total Current Assets on December 31, 2019 balance sheet?
2. What did Amazures record as Total Current Liabilities on December 31, 2019 balance sheet?
3. What did Amazures record as Total Assets on December 31, 2019 balance sheet?
4. What was Total Shareholder's Equity on Amazures December 31, 2019 balance sheet?
5. Amazures, Inc. reported net income for 2019 of $2,286,200 and the company paid dividends of $1.05 per share in 2019. Given this information (along with the data provided above), compute what Amazures Company reported as retained earnings on its December 31, 2018 balance sheet? (Assume that no additional shares of stock were issued between December 31, 2018 and December 31, 2019).

Answer 1

1. What did Amazures record as Total Current Assets on December 31, 2019 balance sheet?

• $51,680,300 - $35,802,400 = $15,877,900

2. What did Amazures record as Total Current Liabilities on December 31, 2019 balance sheet?

• $32,031,600 - $24,768,200 = $7,263,400

3. What did Amazures record as Total Assets on December 31, 2019 balance sheet?

• $51,680,300

4. What was Total Shareholder's Equity on Amazures December 31, 2019 balance sheet?

• $19,648,700

5. Amazures, Inc. reported net income for 2019 of $2,286,200 and the company paid dividends of $1.05 per share in 2019. Given this information (along with the data provided above), compute what Amazures Company reported as retained earnings on its December 31, 2018 balance sheet? (Assume that no additional shares of stock were issued between December 31, 2018 and December 31, 2019).

• $7,986,800 + $2,286,200 - $1,231,125 = $9,041,875

If we use this new information to recalculate questions 1 - 4, then:

• total equity = $20,703,775
• liabilities do not change
• total assets = $52,735,375
• current assets = $16,932,975

Step-by-step explanation:

I had to organize the accounts:

Assets:

Cash 2,449,400

Net accounts receivable 2,111,000

Inventory 11,317,500

Net fixed assets 35,802,400

Total assets = $51,680,300

Liabilities:

Accounts payable 2,875,400

Accruals 86,300

Short-term bank loan 547,600

Current portion of Long-term debt 3,754,100

Long-term debt (excluding current portion) 24,768,200

total liabilities = $32,031,600

Equity:

Common stock ($1.60 par value) 1,876,000

Additional paid in capital 9,785,900

Retained earnings 7,986,800

Total equity = $19,648,700

Total liabilities + equity = $51,680,300

ending inventory = beginning inventory + purchases - COGS = 12,479,200 + 146,795,100 - 147,956,800 = 11,317,500

net accounts receivable = gross accounts receivable - returns and allowances = 2,148,600 - 37,600 = 2,111,000