Reference no: EM132525050
Canadian Bacon Inc. financial statements are presented in the table below.
Question 1: Based on the information in the table, and using a 365-day year, calculate Average Day's Cost of Goods Sold. Round the answers to two decimal places
Balance Sheet December 31, 2014
Cash and marketable securities $132,000
Accounts payable $399,000
Accounts receivable $311,000
Notes payable $98,500
Inventories $512,000
Accrued expenses $89,300
Prepaid expenses $11,300
Total current liabilities $586,800
Total current assets $966,300
Long-term debt $799,400
Gross fixed assets $2,104,000
Par value and paid-in-capital $298,000
Less: accumulated depreciation $398,000
Retained Earnings $988,100
Net fixed assets $1,706,000
Common Equity 1,286,100
Total assets $2,672,300
Total liabilities and owner's equity $2,672,300
Income Statement, Year of 2014
Net sales (all credit) $4,276,600.00
Less: Cost of goods sold $3,292,982.00
Selling and administrative expenses $349,000.00
Depreciation expense $148,000.00
EBIT $486,618.00
Interest expense $49,600.00
Earnings before taxes $437,018.00
Income taxes $174,807.20
Net income $262,210.80