Santo Corporation experienced a fire on December 31, 2014, 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 5 times
2. The return on ordinary shareholders' equity is 18%. The company had no share premium.
3. The accounts receivable turnover is 9.4 times.
4. The return on assets is 16%.
5. Total assets at December 31, 2013, were $585,000.
Instructions
Compute the following for Santo Corporation.
(a) Cost of goods sold for 2014.
(b) Net sales (credit) for 2014.
(c) Net income for 2014.
(d) Total assets at December 31, 2014.

Question

Santo Corporation experienced a fire on December 31, 2014, 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 5 times
2. The return on ordinary shareholders' equity is 18%. The company had no share premium.
3. The accounts receivable turnover is 9.4 times.
4. The return on assets is 16%.
5. Total assets at December 31, 2013, were $585,000.
Instructions
Compute the following for Santo Corporation.
(a) Cost of goods sold for 2014.
(b) Net sales (credit) for 2014.
(c) Net income for 2014.
(d) Total assets at December 31, 2014.

Quizplus · Accepted Answer

The Answer of Santo Corporation experienced a fire on December 31, 2014, 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 5 times
2. The return on ordinary shareholders' equity is 18%. The company had no share premium.
3. The accounts receivable turnover is 9.4 times.
4. The return on assets is 16%.
5. Total assets at December 31, 2013, were $585,000.
Instructions
Compute the following for Santo Corporation.
(a) Cost of goods sold for 2014.
(b) Net sales (credit) for 2014.
(c) Net income for 2014.
(d) Total assets at December 31, 2014.

Santo Corporation Experienced a Fire on December 31, 2014, in Which