## Prepare a balance sheet for Mullen’s Hardware for December 31 of last year.

1. Choose the one alternative that best completes the statement or answers the question. Solve the problem.

Prepare a balance sheet for Mullen’s Hardware for December 31 of last year. The company assets are cash \$15,000, accounts receivable \$21,000, and merchandise inventory \$95,000. The liabilities are accounts payable \$12,000 and wages payable \$17,000. The owner’s capital is \$102,000.

 Mullen’s Hardware Balance Sheet Total assets: \$131,000 Total liabilities: \$29,000 Total liabilities and owner’s equity: \$131,000 Mullen’s Hardware Balance Sheet Total assets: \$131,000 Total liabilities: \$12,000 Total liabilities and owner’s equity: \$131,000 Mullen’s Hardware Balance Sheet Total assets: \$95,000 Total liabilities: \$12,000 Total liabilities and owner’s equity: \$102,000 Mullen’s Hardware Balance Sheet Total assets: \$131,000 Total liabilities: \$17,000 Total liabilities and owner’s equity: \$17,000

### Question 2

1. Solve the problem. Express answers as a percent rounded to the nearest tenth.

Complete a vertical analysis on the balance sheet for Mullen’s Hardware for December 31 of last year. The company assets are cash \$11,000, accounts receivable \$40,000, and merchandise inventory \$96,000. The liabilities are accounts payable \$19,000 and wages payable \$25,000. The owner’s capital is \$103,000.

 Mullen’s Hardware Balance Sheet Cash: 7.5% Accounts receivable: 27.2% Merchandise inventory: 65.3% Total assets: 100% Accounts payable: 43.2% Wages payable: 17.0% Total liabilities: 29.9% Mullen’s capital: 70.1% Total liabilities and owner’s equity: 100% Mullen’s Hardware Balance Sheet Cash: 7.5% Accounts receivable: 27.2% Merchandise inventory: 65.3% Total assets: 100% Accounts payable: 12.9% Wages payable: 56.8% Total liabilities: 29.9% Mullen’s capital: 70.1% Total liabilities and owner’s equity: 100% Mullen’s Hardware Balance Sheet Cash: 7.5% Accounts receivable: 27.2% Merchandise inventory: 65.3% Total assets: 100% Accounts payable: 12.9% Wages payable: 17.0% Total liabilities: 29.9% Mullen’s capital: 70.1% Total liabilities and owner’s equity: 100% Mullen’s Hardware Balance Sheet Cash: 7.5% Accounts receivable: 27.2% Merchandise inventory: 65.3% Total assets: 100% Accounts payable: 43.2% Wages payable: 56.8% Total liabilities: 100% Mullen’s capital: 70.1% Total liabilities and owner’s equity: 100%

### Question 3

1. Solve the problem. Express answers as a percent rounded to the nearest tenth.

Complete a vertical analysis  on the balance sheet for Jake’s Janitorial Service for December 31 of last year. The company assets are cash \$20,000, accounts receivable \$48,000, merchandise inventory \$89,000, and equipment \$82,000. The liabilities are accounts payable \$13,000, wages payable \$16,000, and mortgage note payable \$77,000. The owner’s capital is \$133,000.

 Jake’s Janitorial Service Balance Sheet Cash: 8.4% Accounts receivable: 20.1% Merchandise inventory: 37.2% Equipment: 34.3% Total assets: 100% Accounts payable: 12.3% Wages payable: 15.1% Mortgage note payable: 32.2% Total liabilities: 44.4% Jake’s capital: 55.6% Total liabilities and owner’s equity: 100% Jake’s Janitorial Service Balance Sheet Cash: 8.4% Accounts receivable: 20.1% Merchandise inventory: 37.2% Equipment: 34.3% Total assets: 100% Accounts payable: 5.4% Wages payable: 6.7% Mortgage note payable: 72.6% Total liabilities: 44.4% Jake’s capital: 55.6% Total liabilities and owner’s equity: 100% Jake’s Janitorial Service Balance Sheet Cash: 8.4% Accounts receivable: 20.1% Merchandise inventory: 37.2% Equipment: 34.3% Total assets: 100% Accounts payable: 12.3% Wages payable: 15.1% Mortgage note payable: 72.6% Total liabilities: 100% Jake’s capital: 55.6% Total liabilities and owner’s equity: 100% Jake’s Janitorial Service Balance Sheet Cash: 8.4% Accounts receivable: 20.1% Merchandise inventory: 37.2% Equipment: 34.3% Total assets: 100% Accounts payable: 5.4% Wages payable: 6.7% Mortgage note payable: 32.2% Total liabilities: 44.4% Jake’s capital: 55.6% Total liabilities and owner’s equity: 100%

### Question 4

1. Solve the problem.

For the month ending June 30, TriCounty Nursery has net sales of \$251,000, cost of goods sold of \$99,000, and operating expenses of \$70,000. Find the gross profit and net income.

 gross profit: \$152,000; net income: \$82,000 gross profit: \$72,100; net income: \$29,000 gross profit: \$82,000; net income: \$152,000 gross profit: \$152,000; net income: \$29,000

### Question 5

1. Solve the problem.

For the month ending December 31, MidState Machinery had gross sales of \$4,207,000, returns of \$68,800, cost of beginning inventory \$502,000, cost of purchases \$1,484,000, cost of ending inventory \$570,000, total operating expenses \$135,900. Find the net sales and cost of goods sold.

 net sales: \$4,207,000; cost of goods sold: \$1,416,000 net sales: \$4,138,200; cost of goods sold: \$1,416,000 net sales: \$4,138,200; cost of goods sold: \$135,900 net sales: \$4,138,200; cost of goods sold: \$2,716,300

### Question 6

1. Solve the problem. Express answers as a percent rounded to the nearest tenth.

The Garden Shop had a cost of goods sold of \$108,000, operating expenses of \$49,000, and net sales of \$272,000. Find the cost of goods sold percent of net sales and operating expenses percent of net sales.

 cost of goods sold percent of net sales: 39.7%, operating expenses percent of net sales: 21.7% cost of goods sold percent of net sales: 21.7%, operating expenses percent of net sales: 39.7% cost of goods sold percent of net sales: 18.0%, operating expenses percent of net sales: 39.7% cost of goods sold percent of net sales: 39.7%, operating expenses percent of net sales: 18.0%

### Question 7

1. Solve the problem. Express answers as a percent rounded to the nearest tenth.

Speedy Cleaning Service had a cost of beginning inventory of \$40,000, net sales of \$222,000, and gross sales of \$401,000. Find the beginning inventory percent of net sales and gross sales percent of net sales.

 beginning inventory percent of net sales: 180.6%, gross sales percent of net sales: 18.0% beginning inventory percent of net sales: 18.0%, gross sales percent of net sales: 180.6% beginning inventory percent of net sales: 65.3%, gross sales percent of net sales: 18.0% beginning inventory percent of net sales: 18.0%, gross sales percent of net sales: 65.3%

### Question 8

1. Solve the problem. Round to the nearest tenth.

Find the percent increase (or decrease) in net sales from last year to this year for the income statement.

 10.6% decrease 10.6% increase 10.3% increase 10.3% decrease

### Question 9

1. Solve the problem. Round to the nearest tenth.

Find the percent increase (or decrease) in cost of goods sold from last year to this year for the income statement.

 50.8% increase 7.4% decrease 50.8% decrease 7.4% increase

### Question 10

1. Solve the problem.

Prepare a balance sheet for Jake’s Janitorial Service for December 31 of last year. The company assets are cash \$16,000, accounts receivable \$58,000, merchandise inventory \$50,000, and equipment \$97,000. The liabilities are accounts payable \$23,000, wages payable \$22,000, and mortgage note payable \$87,000. The owner’s capital is \$89,000.

 Jake’s Janitorial Service Balance Sheet Total assets: \$221,000 Total liabilities: \$110,000 Total liabilities and owner’s equity: \$89,000 Jake’s Janitorial Service Balance Sheet Total assets: \$221,000 Total liabilities: \$132,000 Total liabilities and owner’s equity: \$89,000 Jake’s Janitorial Service Balance Sheet Total assets: \$221,000 Total liabilities: \$132,000 Total liabilities and owner’s equity: \$221,000 Jake’s Janitorial Service Balance Sheet Total assets: \$124,000 Total liabilities: \$132,000 Total liabilities and owner’s equity: \$89,000