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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Incomplete financial statements for ABC Company arc as follows:

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
Transcribed Image Text: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
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