Garcia Corporation experienced a fire on December 31, 2010, 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, 2010 |
December 31, 2009 |
|
|
Cash |
$ 30,000 |
$ 10,000 |
|
Receivables (net) |
72,500 |
126,000 |
|
Inventory |
200,000 |
180,000 |
|
Accounts payable |
50,000 |
10,000 |
|
Notes payable |
30,000 |
20,000 |
|
Common stock, $100 par |
400,000 |
400,000 |
|
Retained earnings |
113,500 |
101,000 |
Additional information:
1. The inventory turnover is 4.4 times.
2. The return on common stockholders’ equity is 18%. The company had no additional paid in capital.
3. The receivables turnover is 11.2 times.
4. The return on assets is 16%.
5. Total assets at December 31, 2009, were $605,000.
Instructions
Compute the following for Garcia Corporation.
(a) Cost of goods sold for 2010.
(b) Net credit sales for 2010.
(c) Net income for 2010.
(d) Total assets at December 31, 2010.