Litwin
Litwin, Inc.
Comparative Balance Sheets December 31, 2008 2007
Assets:
Current Assets: Cash $ 690,000 $ 540,000 Accounts Receivable (net) 1,560,000 1,080,000 Merchandise Inventory 1,950,000 1,260,000 Prepaid Expenses 351,000 315,000 Total Current Assets 4,551,000 3,195,000
Long-Term Investments 225,000
Plant Assets: Property, Plant & Equipment 2,190,000 1,440,000 Accumulated Depreciation (450,000) (270,000) Total Plant Assets 1,740,000 1,170,000
Total Assets $6,516,000 $4,365,000
Equities:
Current Liabilities: Accounts Payable $1,275,000 $1,095,000 Accrued Expenses 309,000 282,000 Dividends Payable 201,000 Total Current Liabilities 1,785,000 1,377,000
Long-Term Notes Payable 825,000
Stockholders' Equity: Common Stock 3,000,000 2,400,000 Retained Earnings 906,000 588,000
Total Equities $6,516,000 $4,365,000
Litwin, Inc.
Comparative Income Statements December 31, 2008 2007 Net Credit Sales $7,020,000 $3,753,000 Cost of Goods Sold 3,915,000 1,881,000 Gross Profit 3,105,000 1,872,000 Expenses (including Income Tax) 2,586,000 1,374,000 Net Income $ 519,000 $ 498,000
Additional Information:
a. Accounts receivable and accounts payable relate to merchandise held for sale in the normal course of business. The allowance for bad debts was the same at the end of 2008 and 2007, and no receivables were charged against the allowance. Accounts payable are recorded net of any discount and are always paid within the discount period.
b. The proceeds from the note payable were used to finance the acquisition of property, plant, and equipment. Capital stock was sold to provide additional working capital.
79. What amount of cash was collected from 2008 accounts receivable?
a. $7,500,000.
b. $7,020,000.
c. $6,540,000.
d. $3,270,000.
80. What amount of cash was paid on accounts payable to suppliers during 2008?
a. $4,605,000.
b. $4,425,000.
c. $4,095,000.
d. $3,735,000.
81. The amount to
Comparative Balance Sheets December 31, 2008 2007
Assets:
Current Assets: Cash $ 690,000 $ 540,000 Accounts Receivable (net) 1,560,000 1,080,000 Merchandise Inventory 1,950,000 1,260,000 Prepaid Expenses 351,000 315,000 Total Current Assets 4,551,000 3,195,000
Long-Term Investments 225,000
Plant Assets: Property, Plant & Equipment 2,190,000 1,440,000 Accumulated Depreciation (450,000) (270,000) Total Plant Assets 1,740,000 1,170,000
Total Assets $6,516,000 $4,365,000
Equities:
Current Liabilities: Accounts Payable $1,275,000 $1,095,000 Accrued Expenses 309,000 282,000 Dividends Payable 201,000 Total Current Liabilities 1,785,000 1,377,000
Long-Term Notes Payable 825,000
Stockholders' Equity: Common Stock 3,000,000 2,400,000 Retained Earnings 906,000 588,000
Total Equities $6,516,000 $4,365,000
Litwin, Inc.
Comparative Income Statements December 31, 2008 2007 Net Credit Sales $7,020,000 $3,753,000 Cost of Goods Sold 3,915,000 1,881,000 Gross Profit 3,105,000 1,872,000 Expenses (including Income Tax) 2,586,000 1,374,000 Net Income $ 519,000 $ 498,000
Additional Information:
a. Accounts receivable and accounts payable relate to merchandise held for sale in the normal course of business. The allowance for bad debts was the same at the end of 2008 and 2007, and no receivables were charged against the allowance. Accounts payable are recorded net of any discount and are always paid within the discount period.
b. The proceeds from the note payable were used to finance the acquisition of property, plant, and equipment. Capital stock was sold to provide additional working capital.
79. What amount of cash was collected from 2008 accounts receivable?
a. $7,500,000.
b. $7,020,000.
c. $6,540,000.
d. $3,270,000.
80. What amount of cash was paid on accounts payable to suppliers during 2008?
a. $4,605,000.
b. $4,425,000.
c. $4,095,000.
d. $3,735,000.
81. The amount to