Income Statement For the Year Ended December 31, 2012 Sales. $1,800,000 A Less cost of goods sold. Gross margin.. Less operating expenses. Net operating income Less interest expense .. $900,000 B $45,000 D E F Net income before taxes.. Less income taxes (40%) Net income Balance Sheet December 31, 2012 January 1, 2012 Current assets: Cash Accounts receivable, net. $160.000 Inventory. . $280,000 Total current assets.. E Debt-to-equity ratio E Earnings per share E Return on total assets 0.875 to 1 Plant and equipment, net Total assets. 4 $4.05 5 $1,200,000 14% $250,000 6 Current liabilities (b) All sales during the year were on account. (c) The interest expense on the income statement relates to the bonds pay- able; the amount of bonds outstanding did not change throughout the Bonds payable, 10%.. Total liabilities Stockholder's equity. 81 year. Common stock, $2.50 par value. Retained earnings Total stockholders' equity 19 (d) There were no issues or retirements of common stock during the year. 10 Required: Compute the missing amounts on the company's financial statements. Total liabilities and stockholders'equity 5] Income Statement: The following additional information is available about the company: A B D E (a) Selected financial ratios computed from the preceding statements are given as follows: 8 Current ratio E Quick (acid-test) ratio Z Average collection period O Inventory turnover Balance Sheet: 2.40 to 1 1.12 to 1 2 4 6 10 24.3333 days 6.0 times
Income Statement For the Year Ended December 31, 2012 Sales. $1,800,000 A Less cost of goods sold. Gross margin.. Less operating expenses. Net operating income Less interest expense .. $900,000 B $45,000 D E F Net income before taxes.. Less income taxes (40%) Net income Balance Sheet December 31, 2012 January 1, 2012 Current assets: Cash Accounts receivable, net. $160.000 Inventory. . $280,000 Total current assets.. E Debt-to-equity ratio E Earnings per share E Return on total assets 0.875 to 1 Plant and equipment, net Total assets. 4 $4.05 5 $1,200,000 14% $250,000 6 Current liabilities (b) All sales during the year were on account. (c) The interest expense on the income statement relates to the bonds pay- able; the amount of bonds outstanding did not change throughout the Bonds payable, 10%.. Total liabilities Stockholder's equity. 81 year. Common stock, $2.50 par value. Retained earnings Total stockholders' equity 19 (d) There were no issues or retirements of common stock during the year. 10 Required: Compute the missing amounts on the company's financial statements. Total liabilities and stockholders'equity 5] Income Statement: The following additional information is available about the company: A B D E (a) Selected financial ratios computed from the preceding statements are given as follows: 8 Current ratio E Quick (acid-test) ratio Z Average collection period O Inventory turnover Balance Sheet: 2.40 to 1 1.12 to 1 2 4 6 10 24.3333 days 6.0 times
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Incomplete financial statements for ABC Company arc as follows:
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