As you can see, someone has spilled ink over some of the entries in the balance sheet and income statement of Transylvania Railroad (Table 28.12). Can you use the following information to work out the missing entries? (For this problem, use the following definitions: inventory turnover 5 COGS/average inventory; receivables collection period 5 average receivables/[sales/365].)

• Long-term debt ratio: .4.

• Times-interest-earned: 8.0.

• Current ratio: 1.4.

• Quick ratio: 1.0.

• Cash ratio: .2.

• Inventory turnover: 5.0.

• Receivables collection period: 73 days.

• Tax rate = .4.

Table 28.12

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December 2012December 2011 Balanc Sheet Cash Accounts receivable Inventory 20 Total current assets Fixed assets, net 26 80 25 Total Notes payable Accounts payable 25 30 20 35 Total current liabilities Long-term debt 20 30 Total 115 Income Statement Sales Cost of goods sold Selling, general and administrative expenses Depreciaton EBIT 10 20 Earnings before tax Tax Earnings available for common stock