Question

of $36.000. The company and billed these customers the company had cost of goods sold of sold of S162.900 5. Craft Corner began operations in March with cash and common stock of company made $582,000 in net income its first month. It performed print ich customers and billed these customers $900,000. The company collected half of: receivables by the end of the month. The company had cost of goods sold of S16 naid for in cash and $6,000 inventory left over at the end of the month. Can employees earned wages but those are not paid until the first of April. This was the company's only liability. Required: Complete the following statements for the end of March (6 points) $ 30,000 Balance Sheet Cash Accounts receivable Inventory Total assets Income Statement Sales $900,000 Cost of sales Wages expense 318,000 Net income $ 58200 450,000 Wages payable Retained earnings Total liabilities and equity $319,00 -582000

Answer 1

Craft Corner E.I. DuPont de Nemours and Company Income Statement Sales Cost of sales Wages expense Net Income a.ROE = Net income / Average shareholders' equity = $2,513/ $9,996 = 25.14% b.RNOA = NOPAT/ Average net operating assets = $2,308 / [($33,997 - $21,232 + $12,801)/2] = 18.06% c.Nonoperating return = ROE-RNOA = 25.14% - 18.06% = 7.08% 900000 - 162000 -156000 582000 Wages expense = 900000 - 582000-162000 = 156000 Balance sheet Cash Accounts Receivable Inventory Total Assets 318000 450000 6000 774000 Wages Payable Common Stock Retained Earnings Total Liabilities & Equity 156000 36000 582000 774000