Answer:
A. $412,500
B.$719,250
C.$133,965
D.$76,875
Explanation:
Panza Corporation
(a) Cost of goods sold for 2020
Formula
Inventory turnover ratio
= Cost of goods sold/(beginning inventory + ending inventory)/2
Hence:
2.2 = Cost of goods sold/(195,000+ 180,000)/2
2.2=375,000/2
2.2=187,500
=187,500×2.2
=Cost of goods sold $ 412,500
(b) Net sales (credit) for 2020
Using this formula
Accounts receivable turnover
= Net sales(credit)/ (beginning accounts receivable+ ending accounts receivable)/2
7.0=Net sales(credit) / (80,000 + 125,500)/2
7.0=205,500/2
7.0=102,750
=102,750×7.0
Net sales(credit) = $719,250
(c) Net income for 2020
Using this formula
Return on common stockholders’ equity
= Net income/average common stockholders’ equity
0.26 = Net income/(411,000+411,000+100,000+108,500)/2
0.26=1,030,500/2
0.26=515,250
=515,250×0.26
Net income = $133,965
(d) Total assets at December 31, 2020
Using this formula
Return on assets= Net income/(beginning total assets + ending total assets)/2
0.125 = (615,000 + ending total assets)/2
Total assets at December 31,2017 =$76,875
