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Statement of Cost of Goods Sold; Income Statement; Balance Sheet; Ratio Analysis. On September 30, 19B the trial balance of The FIDELITY Company appeared as follows
THE FIDELITY COMPANY
Trial Balance
September 30, 19B
Cash in Banks and on Hand $ 23,400
Notes Receivable 2,180
Accounts Receivable 44,400
Raw Materials Inventory, October 1, 19A 38,200
Work in Process Inventory, October 1, 19A 44,500
Finished Goods Inventory, October 1, 19A 60,000
Prepaid Expenses 3,550
Land 15,000
Buildings 125,000
Accumulated Depreciation — Buildings $ 1 5,000
Machinery 165,000
Accumulated Depreciation — Machinery 66,000
Office Furniture and Fixtures 2,600
Accumulated Depreciation — Office Furniture and Fixtures 500
Notes Payable 50,000
Accounts Payable 40,000
Accrued Wages Payable 5,000
Accrued Interest on Mortgage 500
Mortgage on Plant 75,000
Capital Stock 100,000
Earnings Retained in Business 130,830
Sales 360,000
Sales Allowances 6,000
Raw Materials Purchased 50,000
Direct Labor 100,000
Patterns and Drawings Expenses 3,500
Miscellaneous Factory Overhead 90,000
Freight and Postage on Sales 1 ,000
Miscellaneous Marketing Expenses 35,000
Miscellaneous Administrative Expenses 25,000
Interest Earned 2,500
Interest Paid 6,000
Discounts on Sales 5,000
Total $845,330 $845,330
Trial Balance
September 30, 19B
Cash in Banks and on Hand $ 23,400
Notes Receivable 2,180
Accounts Receivable 44,400
Raw Materials Inventory, October 1, 19A 38,200
Work in Process Inventory, October 1, 19A 44,500
Finished Goods Inventory, October 1, 19A 60,000
Prepaid Expenses 3,550
Land 15,000
Buildings 125,000
Accumulated Depreciation — Buildings $ 1 5,000
Machinery 165,000
Accumulated Depreciation — Machinery 66,000
Office Furniture and Fixtures 2,600
Accumulated Depreciation — Office Furniture and Fixtures 500
Notes Payable 50,000
Accounts Payable 40,000
Accrued Wages Payable 5,000
Accrued Interest on Mortgage 500
Mortgage on Plant 75,000
Capital Stock 100,000
Earnings Retained in Business 130,830
Sales 360,000
Sales Allowances 6,000
Raw Materials Purchased 50,000
Direct Labor 100,000
Patterns and Drawings Expenses 3,500
Miscellaneous Factory Overhead 90,000
Freight and Postage on Sales 1 ,000
Miscellaneous Marketing Expenses 35,000
Miscellaneous Administrative Expenses 25,000
Interest Earned 2,500
Interest Paid 6,000
Discounts on Sales 5,000
Total $845,330 $845,330
The following information is also available
Inventories on September 30, 19B:
Raw materials, 538,000
Inventories on September 30, 19B:
Raw materials, 538,000
Work in process, $48,000
Finished goods, $82,000
Allowances for depreciation:
3% on buildings (80% to factory, 20% to administration)
10% on machinery (100% to factory)
10% on machinery (100% to factory)
5% on office furniture and fixtures (100% to administration) Ignore income tax.
Required: (1) A cost of goods sold statement for the year ended September 30, 19B:
(2) An income statement for the year ended September 30, 19B.
(3) A balance sheet as of September 30, 19B.
(4) The following ratios and percentages:
(a) Current ratio.
(b) Acid-test ratio.
(c) Net income to net sales percentage.
(d) Ratio of gross profit to net sales.
(e) Rate of return on capital employed.
Required: (1) A cost of goods sold statement for the year ended September 30, 19B:
(2) An income statement for the year ended September 30, 19B.
(3) A balance sheet as of September 30, 19B.
(4) The following ratios and percentages:
(a) Current ratio.
(b) Acid-test ratio.
(c) Net income to net sales percentage.
(d) Ratio of gross profit to net sales.
(e) Rate of return on capital employed.
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