Green Earth Homes, Inc., builds environmentally sensitive structures. The company's 2021 revenues totaled $2,81$
December 31, 2021, and 2020, balance sheets and income statements reported the following amounts:
è´¯ (Click the icon to view the amounts.)
Read the requirements.
Requirement 1. Describe each of Green Earth Homes, Inc.'s liabilities and state how the liability arose.
Choose the correct liability from the list that best fits the description provided.
Long-term debt
The amount of long-term notes and bonds payable that the compa
Other liabilities
Accounts payable
Accrued employee compensation and benefits
Post-retirement benefits
Current portion of long-term debt
Accrued expenses
Requirements
Describe each of Green Earth Homes, Inc.'s liabilities and state how the
liability arose.
What were the company's total assets at December 31,2021 ?
Assume that beginning and ending inventories for both periods did not differ
by a material amount. Accounts payable at the end of 2019 was $198 million.
Calculate accounts payable turnover as a ratio and days' payable outstanding
(DPO) for 2020 and 2021. Calculate current ratios for 2020 and 2021 as well.
Evaluate whether the company improved or deteriorated from the standpoint
of its ability to cover accounts payable and current liabilities over the year.
Requirement 2. What were the company's total assets at December 31, 2021 ?
The total assets at December 31, 2021 were
million.
December 31, 2021, and 2020, balance sheets and income statements reported the following amounts: (Click the icon to view the amounts.)
X
in current assets. The
Requirements
Read the requirements
Describe each of Green Earth Homes, Inc.'s liabilities and state how the liability arose. What were the companys total assets at December 31, 2021? Assume that beginning and ending inventories for both periods did not differ by a material amount. Accounts payable at the end of 2019 was $198 million. Calculate accounts payable turnover as a ratio and days payable outstanding (DPO) for 2020 and 2021. Calculate current ratios for 2020 and 2021 as well. Evaluate whether the company improved or deteriorated from the standpoint of its ability to cover accounts payable and current liabilities over the year.
Requirement 1. Describe each of Green Earth Homes, Inc.'s liabilities and state how the liability arose.
Choose the correct liability from the list that best fits the description provided.
Long-term debt
The amount of long-term notes and bonds payable that the compe
Other liabilities
A catch-all group of liabilities that do not fit one or more specific c
Accounts payable
Amounts owed to suppliers for products or services that have ber
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Done
Accrued employee compensation and benefits Amounts owed to employees for salaries and other payroll-relatex
Post-retirement benefits
Amounts owed for providing benefits to retirees such as health c
Current portion of long-term debt
The next year's payments on the company's long-term debt.
Accrued expenses
Expenses that the company has incurred but not yet paid; these are liabilities for expenses such as interest and income taxes
Requirement 2. What were the company's total assets at December 31, 2021?
The total assets at December 31, 2021 were
3.953 million
Requirement 3. Assume that beginning and ending inventories for both periods did not differ by a material amount. Accounts payable at the end of 2019 was $198 million. Calculate accounts payable turnover as a ratio and days'payable
Determine the formula for the accounts payable turnover. Then complete the formula and calculate the accounts payable turnover ratios at the end of 2020 and 2021. (Enter amounts in millions.)
Purchases from suppliers (or COGS)
Average accounts payable
= Accounts payable turnover
2021
