The Kearney Company, Inc. - Copy

Problem 2-8: Statement of Cost of Goods Sold; Income Statement; Balance Sheet; Ratio Analysis. n Se!tember "#$ 2#%B the trial balance of &he 'earney Com!any a!!eared as follo(s:

Se!tember "#$ 2#%B Cash Cash in in Ban Ban/s /s and and on on )and )and 000 00000 0000 0000 00.0 .0.. ..00 00.0 .00. 0... ..00 0000 00 1 2"$ 2"$## ### # +ote +otess Recei ecei3a 3abl blee 0000 00000 0000. 000..0 .00 00.00 0.000 0000. 000... ...0 .00. 0.00 00.. .. 24$8 24$8## ## Acco Acco5n 5nts ts Rece Recei3 i3aable ble 0000 00000. 0..0 .000 000 000.. 00..00 00.. ...0 .000 000 00.00 0.00 $ $## ### # Ra( Ra( at ater eria ials ls In3e In3ent ntor ory$ y$ cto ctobe berr 4$ 4$ 2#% 2#%A A 000 00000 000. 0... ..0. 0..0 .0.0 .000 00.. 282$ 282$## ### # 6or/ 6or/ in in Proc Proces esss In3e In3ent ntor ory$ y$ ct ctob ober er 4$ 2#% 2#%A A .... ....00 0000 0000 00.. ...0 .000 000. 0. "7$ "7$## ### # ini inish shed ed Goo Goods ds In3 In3en ento tory ry$$ cto ctobe berr 4$ 2#% 2#%A A 0000 000000 00.. ..0. 0... .... ...0 .000 00.. .. 7##$ 7##$## ### # Pre! re!aid aid *9!en 9!ense sess 0000 00000 0...0 ...00. 0... ..0 00000 00000 0000. 000.0. 0...0000 0000.. "7$7 "7$7## ## and and 000 00000 0000 000 00000 0000.. ..0 0.... ....00 0000 0000 0000 00..0.0. 0.0.00 000 0.. 47#$ 47#$## ### # B5il B5ildi dins ns 0000 000000 0000 0000 000. 0. 0000 00000. 0..0 .0.0 .0.. ..00 00.. .... ..0. 0.00 000 0 4$27 4$27#$ #$## ### # Acc5m5lated e e!reciation - B5ildins .....0.0......00..0...000000.. ach achin iner ery y 00000 0000000 0000 0000 000. 0..0 .00. 0..0 .000 0000 000. 0... ..00 0000 00.. 4$<7 4$<7#$ #$## ### # Acc5m5lated e!reciation - achinery 0....000000000000 f=c f=cee 5rn 5rnit it5r 5ree and and i9t i9t5r 5res es 0000 000000 00.. ...0 .0.. ...0 .000 00.0 .000 0000 00.. ...0 .0.. 2<$# 2<$### ## Acc5m5lated e!reciation - f=ce 5rnit5re and i9t5res 00.................... +otes Payable 0000000.00000.00...0.0000000.0 Acco5nts Payable 00000000..000.0...00000000..0. Accr5ed 6aes Payable 0..000000000.0000..00.000. Accr5ed Interest on ortae 0000000..0000000....00..  Pl

1

47#$### <<#$### 7$### 7##$### 4##$### 7#$### 7$### >7# ###

b Acid-test ratio. c +et income to sales !ercentae. d Ratio of ross !ro=t to sales. e Rate of ret5rn on ca!ital em!loyed.

Se!tember "#$ 2#%B

aterials in3entory$ ctober 4$ 2#%, P5rchases ess !5chases ret5rns and allo(ances aterials a3ailable for 5se ess materials in3entory$Se!tember "# irect materials cons5med

iscellaneo5s actory 3erhead Patterns and ra(ins *9!enses e!reciation - factory b5ildin e!reciation - machinery &otal factory o3erhead Add (or/ in !rocess in3entory$ october 4$ 2#%,

1

1

282$###

1

7##$### >82$### 28#$###

7##$### #

1

?##$### "7$### "#$### 4<7$###

"7$###

Se!tember "#$ 2#%B

Administrati3e e9!enses e!receation - B5ildin E f=ce

4#$### 8$8##

iscellaneo5s Administrati3e e9!enses

27#$###

iscellaneo5s ar/etin *9!enses$ *tc

"7#$###

Interest and debt e9!enses

"7$###

or ,ear *nded Se!tember "4$ 2#%B

Cash +ote Recei3able Acco5nts recei3able net In3entories materials$ (or/ in !rocess$ =nished oods Pre!aid ins5rances$ ta9es and mescellaneo5s e9!enses

and B5ildins f=ce 5rnit5re and i9t5res achinery and e5i!ment

1 1 1

ess acc5m5lated de!reciation

1

4$27#$### 2<$### 4$<7#$### 2$?2<$### 4$#48$8##

47#$###

4$?#>$2##

2"$### 24$8## $### 4$"8#$### "7$7##

=

=

 

459,200

=

3,490,000 459,200 3,490,000

=

0.132

0.132