Posted: November 16th, 2015

Classified Balance Sheets

Classified Balance Sheets

The following (given in scrambled order) are accounts and balances from the accounting records of Alleg, Inc., as of December 31, 2012, after the books were closed for the year.

Common stock, authorized 21,000 share
At $1 par value, issued 12,000 shares    $12,000
Additional paid-in capital      38,000
Cash      14,000
Marketable securities      17,000
Accounts receivable      26,000
Accounts Payable      16,000
Current maturities of long-term debt      11,000
Mortgages payable      80,000
Bonds payable      65,000
Inventory      33,000
Land and buildings      57,000
Machinery and equipment    120,000
Goodwill      13,000
Patents        9,000
Other assets      45,000
Deferred income taxes (long-term liability)      18,000
Retained earnings      33,000
Accumulated depreciation      61,000
Bonds and mortgages generally have 10-30 years until maturity. Marketable securities are short-term investments that can be converted to cash in a matter of minutes.

Required:

Prepare a classified balance sheet with a proper heading on a spreadsheet. For assets, use the classifications of current assets, plant and equipment, intangibles, and other assets. For liabilities, use the classifications of current liabilities and long-term liabilities.
Compute the total asset turnover rate assuming that total revenues in 2012 were $682,500. Round to the nearest hundredth, e.g. 3.33.
Assume that Alleg’s primary competitor has an asset turnover of 2.12. What does this tell you about Alleg’s asset management?

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