The December 31, 2019, balance sheet for Baird Corporation ispresented here. These are the only accounts on Baird’s balancesheet. Amounts indicated by question marks (?) can be calculatedusing the following additional information:
BAIRD CORPORATION
Balance Sheet As of December 31, 2019 |
| Assets | | | |
| Cash | $ | 20,000 | |
| Accounts receivable (net) | | ? | |
| Inventory | | ? | |
| Property, plant, and equipment (net) | | 295,000 | |
| $ | 442,000 | |
| Liabilities and Stockholders’ Equity | | | |
| Accounts payable (trade) | $ | ? | |
| Income taxes payable (current) | | 20,000 | |
| Long-term debt | | ? | |
| Common stock | | 301,000 | |
| Retained earnings | | ? | |
| $ | ? | |
|
| Additional Information | | | |
| Current ratio (at year end) | 1.5 to 1.0 |
| Total liabilities ÷ Total stockholders’ equity | | 70 | % |
| Gross margin percentage | | 20 | % |
| Inventory turnover (Cost of goods sold Ă· Ending inventory) | | 12.5 | times |
| Gross margin for 2019 | $ | 318,000 | |
|
Required
- Compute the balance in trade accounts payable as of December31, 2019.
- Compute the balance in retained earnings as of December 31,2019.
- Compute the balance in the inventory account as of December 31,2019. (Assume that the level of inventory did not change from lastyear.)
(For all requirements, negative amounts should beindicated by a minus sign. Do not round intermediate calculations.Round your answers to the nearest whole dollaramount.)
| a. | accounts payable | |
| b. | retained earnings | |
| c. | inventory | |
