Your answer is incorrect. Try again.
Prepare a comparative balance sheet of Gilmour Company showing the dollar change and the percent
change for each item. (Round percentages to 2 decimal places, e.g. 2.25%. If $ or % change
are in decrease, enter amounts or percentages using either a negative sign preceding the
number e.g. -45, -2.25% or parentheses e.g. (45), (2.25)%.)
Assets
GILMOUR COMPANY
Comparative Balance Sheet
December 31, 2013 and 2012
December 31
2013
2012
Cash
$ 180,000
$ 275,000
Accounts receivable (net)
219,500
Short-term investments
Inventories
Accumulated depreciation
Total
%
5.39
9.88
155,300
6.58
5.58
269,300
149,600
8.07
5.38
1,059,600
979,300
31.74
35.19
24,750
24,750
0.74
0.89
2,585,200
1,949,400
77.45
70.04
( 750,100 )
(29.97)
(26.95)
$
100
100
%
$
1.50
2.66
%
Prepaid expenses
Fixed assets
Increase or (Decrease)
$ Change
% Change
( 1,000,500 )
$
$ 3,337,850
$ 2,783,250
Accounts payable
$ 50,020
$ 74,100
Accrued expenses
170,400
199,400
5.11
7.16
Bonds payable
450,500
189,600
13.50
6.81
2,100,000
1,769,300
62.91
63.57
566,930
550,850
16.98
19.79
$ 3,337,850
$ 2,783,250
100
100
Liabilities and Stockholders’ Equity
Capital stock
Retained earnings
Total
$
%
Your answer is partially correct. Try again.
Answer each of the questions in the following unrelated situations.
(a) The current ratio of a company is 5:1 and its acid-test ratio is 1:1. If the inventories and prepaid
items amount to $492,400, what is the amount of current liabilities?
Current Liabilities
$
123100
(b) A company had an average inventory last year of $209,000 and its inventory turnover was 5. If
sales volume and unit cost remain the same this year as last and inventory turnover is 9 this year,
what will average inventory have to be during the current year? (Round answer to 0 decimal
places, e.g. 125.)
Average Inventory
$
116111
(c) A company has current assets of $88,790 (of which $37,160 is inventory and prepaid items) and
current liabilities of $37,160. What is the current ratio? What is the acid-test ratio? If the company
borrows $13,870 cash from a bank on a 120-day loan, what will its current ratio be? What will the
acid-test ratio be? (Round answers to 2 decimal places, e.g. 2.50.)
Current Ratio
2.39
:1
Acid Test Ratio
1.39
:1
New Current Ratio
2.01
:1
New Acid Test Ratio
1.28
:1
(d) A company has current assets of $605,100 and current liabilities of $239,000. The board of
directors declares a cash dividend of $191,200. What is the current ratio after the declaration but
before payment? What is the current ratio after the payment of the dividend? (Round answers to 2
decimal places, e.g. 2.50.)
Current ratio after the declaration but before payment
1.41
:1
Current ratio after the payment of the dividend
1.71
:1
Presented below are comparative balance sheets for the Gilmour Company.
GILMOUR COMPANY
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2013 AND 2012
December 31
2013
2012
$180,200
$275,700
220,400
154,300
270,100
149,400
1,061,000
980,700
Assets
Cash
Accounts receivable (net)
Short-term investments
Inventories
Prepaid expenses
Fixed assets
Accumulated depreciation
24,140
24,140
2,585,600
1,949,300
(1,000,900 )
(750,100 )
$3,340,540
$2,783,440
Accounts payable
$50,700
$75,180
Accrued expenses
169,500
200,500
Liabilities and Stockholders’ Equity
Bonds payable
Capital stock
Retained earnings
450,100
190,600
2,100,000
1,770,300
570,240
546,860
$3,340,540
$2,783,440
(a)
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Prepare a comparative balance sheet of Gilmour Company showing the percent each item is of
the total assets or total liabilities and stockholders’ equity. (Round percentages to 2 decimal
places, e.g. 2.25%. For accumulated depreciation, enter percentages using either a
negative sign preceding the number e.g. -2.25% or parentheses e.g. (2.25)%.)
Assets
GILMOUR COMPANY
Comparative Balance Sheet
December 31, 2013 and 2012
December 31
2013
Cash
$ 180,200
5.39
Accounts receivable (net)
220,400
Short-term investments
270,100
Inventories
Prepaid expenses
Fixed assets
Accumulated depreciation
1,061,000
24,140
%
2012
$ 275,700
9.91
6.60
154,300
5.54
8.09
149,400
5.37
31.76
980,700
35.23
24,140
0.72
%
0.87
2,585,600
77.40
1,949,300
70.03
( 1,000,900 )
-29.96
( 750,100 )
-26.95
$
3,340,540
100
%
$
2,783,440
100
%
Accounts payable
$ 50,700
1.52
%
$ 75,180
2.70
%
Accrued expenses
169,500
5.07
200,500
7.20
Bonds payable
450,100
13.47
190,600
6.85
2,100,000
62.86
1,770,300
Total
Liabilities and Stockholders’
Equity
Capital stock
63.60
Retained earnings
570,240
$
3,340,540
Total
546,860
17.07
%
100
19.65
$
2,783,440
100
%
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(b)
Prepare a comparative balance sheet of Gilmour Company showing the dollar change and the
percent change for each item. (Round percentages to 2 decimal places, e.g. 2.25%. If $ or
% change are in decrease, enter amounts or percentages using either a negative sign
preceding the number e.g. -45, -2.25% or parentheses e.g. (45), (2.25)%.)
GILMOUR COMPANY
Comparative Balance Sheet
December 31, 2013 and 2012
December 31
Assets
2013
2012
$ 180,200
$ 275,700
Accounts receivable (net)
220,400
154,300
Short-term investments
270,100
149,400
1,061,000
980,700
24,140
24,140
2,585,600
1,949,300
Cash
Inventories
Prepaid expenses
Fixed assets
Accumulated depreciation
Total
( 1,000,900 )
Increase or (Decrease)
%
$ Change
Change
$
%
( 750,100 )
$
3,340,540
$
2,783,440
$ 50,700
$ 75,180
$
%
Liabilities and Stockholders’
Equity
Accounts payable
$
%
Accrued expenses
169,500
200,500
Bonds payable
450,100
190,600
2,100,000
1,770,300
570,240
546,860
$
3,340,540
$
2,783,440
Capital stock
Retained earnings
Total
$
%