Santo Corporation experienced a fire on December 31, 2011, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following balances.
Additional information:
1. The inventory turnover is 4.5 times
2. The return on common stockholders' equity is 22%. The company had no additional paid-in capital.
3. The receivables turnover is 8.8 times.
4. The return on assets is 20%.
5. Total assets at December 31, 2010, were $585,000.
Instructions
Compute the following for Santo Corporation.
(a) Cost of goods sold for 2011.
(b) Net sales (credit) for 2011.
(c) Net income for 2011.
(d) Total assets at December 31, 2011.

Question

Santo Corporation experienced a fire on December 31, 2011, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following balances.  
Additional information:
1. The inventory turnover is 4.5 times
2. The return on common stockholders' equity is 22%. The company had no additional paid-in capital.
3. The receivables turnover is 8.8 times.
4. The return on assets is 20%.
5. Total assets at December 31, 2010, were $585,000.
Instructions
Compute the following for Santo Corporation.
(a) Cost of goods sold for 2011.
(b) Net sales (credit) for 2011.
(c) Net income for 2011.
(d) Total assets at December 31, 2011.

Quizplus · Accepted Answer

The Answer of Santo Corporation experienced a fire on December 31, 2011, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following balances.  
Additional information:
1. The inventory turnover is 4.5 times
2. The return on common stockholders' equity is 22%. The company had no additional paid-in capital.
3. The receivables turnover is 8.8 times.
4. The return on assets is 20%.
5. Total assets at December 31, 2010, were $585,000.
Instructions
Compute the following for Santo Corporation.
(a) Cost of goods sold for 2011.
(b) Net sales (credit) for 2011.
(c) Net income for 2011.
(d) Total assets at December 31, 2011.

Santo Corporation Experienced a Fire on December 31, 2011, in Which