question archive Financial Analysis Belcanto Corporation experienced a fire on December 31, 2014, in which its financial records were partially destroyed
Financial Analysis Belcanto Corporation experienced a fire on December 31, 2014, in which its financial records were partially destroyed
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Financial Analysis
Belcanto Corporation experienced a fire on December 31, 2014, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following balances.
|
|
December 31, 2014 |
December 31, 2013 |
|
Cash |
$ 40,000 |
$ 15,000 |
|
Accounts receivable (net) |
84,000 |
126,000 |
|
Inventory |
200,000 |
180,000 |
|
Total Assets |
570,000 |
501,000 |
|
Accounts payable |
50,000 |
10,000 |
|
Notes payable |
30,000 |
20,000 |
|
Common stock |
40,000 |
40,000 |
|
Retained earnings |
270,000 |
200,000 |
Additional information:
- The inventory turnover is 4.2 times
- The return on assets is 14%
- The accounts receivable turnover is 10.2 times.
