A1 Consulting Corporation experienced a fire on December 31, 2025, 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,
2024
Cash
Accounts receivable (net)
Inventory
Accounts payable
Notes payable
Common stock, $100 par
Retained earnings
Additional information:
1. The inventory turnover is 4.2 times
December 31, 2025
$ 40,000
84,000
200,000
50,000
30,000
400,000
170,000
$ 15,000
126,000
180,000
10,000
20,000
400,000
101,000
2. The return on common stockholders' equity is 14%. The company had no additional paid-in-
capital.
3. The accounts receivable turnover is 10.2 times.
4. The return on assets is 12.5%.
5. Total assets, Dec. 31, 2024 = $604,750.
Instructions
Compute the following values for 2025:
(a) Cost of goods sold.
(b) Net credit sales.
(c) Net income.
(d) Total assets.