Belcanto Corporation experienced a fire on December 31, 2017, 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 4.2 times
2. The return on common stockholders' equity is 14%. The company had no additional paid-in-capital.
3. The accounts receivable turnover is 10.2 times.
4. The return on assets is 12.5%.
5. Total assets, Dec. 31, 2016 = $604,750.
Instructions
Compute the following values for 2017.
(a) Cost of goods sold.
(b) Net credit sales.
(c) Net income.
(d) Total assets.

Question

Belcanto Corporation experienced a fire on December 31, 2017, 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 4.2 times
2. The return on common stockholders' equity is 14%. The company had no additional paid-in-capital.
3. The accounts receivable turnover is 10.2 times.
4. The return on assets is 12.5%.
5. Total assets, Dec. 31, 2016 = $604,750.
Instructions
Compute the following values for 2017.
(a) Cost of goods sold.
(b) Net credit sales.
(c) Net income.
(d) Total assets.

Quizplus · Accepted Answer

The Answer of Belcanto Corporation experienced a fire on December 31, 2017, 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 4.2 times
2. The return on common stockholders' equity is 14%. The company had no additional paid-in-capital.
3. The accounts receivable turnover is 10.2 times.
4. The return on assets is 12.5%.
5. Total assets, Dec. 31, 2016 = $604,750.
Instructions
Compute the following values for 2017.
(a) Cost of goods sold.
(b) Net credit sales.
(c) Net income.
(d) Total assets.

Belcanto Corporation Experienced a Fire on December 31, 2017, in Which