The December 31, 2019, balance sheet for Benson Corporation is presented here. These are the...
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Accounting
The December 31, 2019, balance sheet for Benson Corporation is presented here. These are the only accounts on Bensons balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information:
BENSON CORPORATION Balance Sheet As of December 31, 2019
Assets
Cash
$
25,000
Accounts receivable (net)
?
Inventory
?
Property, plant, and equipment (net)
294,000
$
435,000
Liabilities and Stockholders Equity
Accounts payable (trade)
$
?
Income taxes payable (current)
25,000
Long-term debt
?
Common stock
300,000
Retained earnings
?
$
?
Additional Information
Current ratio (at year end)
1.2 to 1.0
Total liabilities Total stockholders equity
60
%
Gross margin percentage
40
%
Inventory turnover (Cost of goods sold Ending inventory)
10.5
times
Gross margin for 2019
$
350,000
Required
Compute the balance in trade accounts payable as of December 31, 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 last year.)
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