The December 31, 2005, balance sheet for Webb Corporation is presented here. These are the only accounts on Webb’s balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information.
Accounts Receivable (net)$ 50,000
Property, Plant, and Equipment (net)
Liabilities and Stockholders’ Equity
Accounts Payable (trade)
Income Taxes Payable (current)
Current Ratio (at year end)
1.5 to 1.0
Total Liabilities ÷ Total Stockholders’ Equity
Gross Margin Percent
Inventory Turnover (Cost of Goods Sold ÷
Gross Margin for 2005
Determine the following.
a. The balance in trade accounts payable as of December 31, 2005.
b. The balance in retained earnings as of December 31, 2005.
c. The balance in the inventory account as of December 31, 2005. (Assume that the level of inventory did not change from last year.)