Cadux Candy Company's income statement for the year ended December 31, 2024, reported interest expense of $3 million and income tax expense of $20 million. Current assets listed in its balance sheet include cash, accounts receivable, and inventory. Property, plant, and equipment is the company's only noncurrent asset. Financial ratios for 2024 are listed below. Profitability and turnover ratios with balance sheet items in the denominator were calculated using year-end balances rather than averages. Debt to equity ratio Current ratio Acid-test ratio Times interest earned ratio Return on assets Return on equity 0.8 2.0 1.0 16 times 20% 36% Profit margin on sales 10% Gross profit margin (gross profit divided by net sales) 20% Inventory turnover 8 times Receivables turnover 21 times Required: Prepare a December 31, 2024, balance sheet for the Cadux Candy Company. Note: Enter your answers in millions. Round your intermediate calculations and final answer to the nearest whole million. CADUX CANDY COMPANY Balance Sheet At December 31, 2024 ($ in millions) Assets Current assets: Cash Accounts receivable (net) Inventory Total current assets Property, plant, and equipment (net) Total assets Liabilities and Shareholders' Equity Current liabilities Long-term liabilities 0 $ 0
Cadux Candy Company's income statement for the year ended December 31, 2024, reported interest expense of $3 million and income tax expense of $20 million. Current assets listed in its balance sheet include cash, accounts receivable, and inventory. Property, plant, and equipment is the company's only noncurrent asset. Financial ratios for 2024 are listed below. Profitability and turnover ratios with balance sheet items in the denominator were calculated using year-end balances rather than averages. Debt to equity ratio Current ratio Acid-test ratio Times interest earned ratio Return on assets Return on equity 0.8 2.0 1.0 16 times 20% 36% Profit margin on sales 10% Gross profit margin (gross profit divided by net sales) 20% Inventory turnover 8 times Receivables turnover 21 times Required: Prepare a December 31, 2024, balance sheet for the Cadux Candy Company. Note: Enter your answers in millions. Round your intermediate calculations and final answer to the nearest whole million. CADUX CANDY COMPANY Balance Sheet At December 31, 2024 ($ in millions) Assets Current assets: Cash Accounts receivable (net) Inventory Total current assets Property, plant, and equipment (net) Total assets Liabilities and Shareholders' Equity Current liabilities Long-term liabilities 0 $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Sagar
Transcribed Image Text:Cadux Candy Company's income statement for the year ended December 31, 2024, reported interest expense of $3 million and
income tax expense of $20 million. Current assets listed in its balance sheet include cash, accounts receivable, and inventory.
Property, plant, and equipment is the company's only noncurrent asset. Financial ratios for 2024 are listed below. Profitability and
turnover ratios with balance sheet items in the denominator were calculated using year-end balances rather than averages.
0.8
2.0
Debt to equity ratio
Current ratio
Acid-test ratio
1.0
Times interest earned ratio
16 times
Return on assets
20%
Return on equity
36%
Profit margin on sales
10%
Gross profit margin
(gross profit divided by net sales)
20%
Inventory turnover
8 times
Receivables turnover
21 times
Required:
Prepare a December 31, 2024, balance sheet for the Cadux Candy Company.
Note: Enter your answers in millions. Round your intermediate calculations and final answer to the nearest whole million.
CADUX CANDY COMPANY
Balance Sheet
At December 31, 2024
($ in millions)
Assets
Current assets:
Cash
Accounts receivable (net)
Inventory
Total current assets
0
Property, plant, and equipment (net)
Total assets
$
0
Liabilities and Shareholders' Equity
Current liabilities
Long-term liabilities
Shareholders' equity
Total liabilities and shareholders' equity
$
0
www
Prev
1 of 1
Next
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 14 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education