Q7

Q7. Steve Jablonsky Corporation experienced a fire on December 31, 2015, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following balances. December 31, 2015 December 31, 2014 Cash $ 30,000 $ 10,000 Accounts receivable (net) 72,500 126,000 Inventory 200,000 180,000 Accounts payable 50,000 90,000 Notes payable 30,000 60,000 Common stock, $100 par 400,000 400,000 Retained earnings 113,500 101,000 Additional information: 1. The inventory turnover is 4 times. 2. The return on common stockholders' equity is 17%. 3. The accounts receivable turnover is 6 times. 4. The return on assets is 12.5%. 5. Total assets at December 31, 2014, were $625,000. Required Compute the following for George Akerloff Corporation. (a) Cost of goods sold for 2015. (b) Net sales for 2015. (c) Net income for 2015. (d) Total assets at December 31, 2015. (10 points)