The following (given in scrambled order) are accounts and balances from the acco
ID: 2659453 • Letter: T
Question
The following (given in scrambled order) are accounts and balances from the accounting records of Alleg, Inc., as of December 31, 2012, after the books were closed for the year.
Bonds and mortgages generally have 10-30 years until maturity. Marketable securities are short-term investments that can be converted to cash in a matter of minutes.
Required:
Common stock, authorized 21,000 share
At $1 par value, issued 12,000 shares $12,000 Additional paid-in capital 38,000 Cash 14,000 Marketable securities 17,000 Accounts receivable 26,000 Accounts Payable 16,000 Current maturities of long-term debt 11,000 Mortgages payable 80,000 Bonds payable 65,000 Inventory 33,000 Land and buildings 57,000 Machinery and equipment 120,000 Goodwill 13,000 Patents 9,000 Other assets 45,000 Deferred income taxes (long-term liability) 18,000 Retained earnings 33,000 Accumulated depreciation 61,000
Explanation / Answer
Alleged Inc Classified Balance sheet As on Dec 31st, 2012 Assets Amount Amount Current Assets: Cash $ 14,000 Account Receivable $ 26,000 Inventory $ 33,000 Marketable equity securities $ 17,000 Total current assets $ 90,000 Propert, Plant & Equipments: Land & Building $ 57,000 Machinery & Equipment $ 120,000 $ 177,000 Less: Accumulated depreciation $ 61,000 Total Property, Plant & equipments (Net) $ 116,000 Intangible assets: Goodwill $ 13,000 Patents $ 9,000 Total intangibles: $ 22,000 Other Assets: $ 45,000 Total Assets: $ 273,000 Liabilities: Current liabilities: Accounts Payable $ 16,000 Current maturities of long term debt $ 11,000 Total current liabilities $ 27,000 Long Term liabilities: Mortgage payable $ 80,000 Bonds payable $ 65,000 Deferred Income taxes: $ 18,000 Total Long term liabilities: $ 163,000 Total Liabilities $ 190,000 Total stockholders equity & Retained Earnings Paid in capital Common stock, $1 par value 21000 shares authorized 12000 shares issued and outstanding $ 12,000 Additional paid in capital Common stock $ 38,000 Total paid in capital $ 50,000 Retained Earning $ 33,000 Total Stockholders Equity & Retained earning: $ 83,000 Total Liabilities & stockholders Equity $ 273,000 Asset Turn over Ratio Total Sales Total Assets Where as Total Sales $ 682,500 Total Assets $ 273,000 Asset Turn over Ratio $ 682,500 $ 273,000 Asset Turn over Ratio 2.50 Times Conclusion: The Asset Turnover Ratio of Alleg, Inc is 2.50 when you compare with primary competitor has an asset turnover of 2.12. it indicates that Alleg, Inc perfomance is better than the primary competitor