The December 31, Year 4, balance sheet for Baird Corporation is presented here. These are the only accounts on Baird’s balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information: Cash
Accounts receivable (net)
Inventory
Property, plant, and equipment (net)
Liabilities and Stockholders' Equity
Accounts payable (trade)
Income taxes payable (current)
Long-term debt
Common stock
Retained earnings
$ 20,000
?
?
295,000
$442,000
$
?
20,000
?
301,000
?
?
a. Accounts payable
b. Retained earnings
c. Inventory
$
Additional Information
Current ratio (at year end)
Total liabilities + Total stockholders' equity
Gross margin percentage
Inventory turnover (Cost of goods sold + Ending inventory)
Gross margin for Year 4
1.5 to 1.0
70%
20%
12.5 times
Required
a. Compute the balance in trade accounts payable as of December 31, Year 4.
b. Compute the balance in retained earnings as of December 31, Year 4.
c. Compute the balance in the inventory account as of December 31, Year 4. (Assume that the level of inventory did not change from
last year.)
$318,000
(For all requirements, negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your
answers to the nearest whole dollar amount.)