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1. The partially complete 2012 balance sheet and income statement for Challenge Industries are given below, followed by selected ratio values for the firm based

1. The partially complete 2012 balance sheet and income statement for Challenge Industries are given below, followed
by selected ratio values for the firm based on its completed 2012 financial statements. Use the ratios along with the partial statements to complete the financial statements. Hint: Use the ratios in the order listed to calculate the missing statement values that need to be installed in the partial statements.
Current assets Cash
$ 52,000 60,000 200,000 Inventory ?
Marketable securities Accounts receivable
Challenge Industries, Inc. Balance Sheet
At December 31, 2012 (in $ thousands)
Assets
Liabilities and Equity
Current liabilities
Accounts payable $150,000 Notes payable ? Accruals 80,000
Total current liabilities ? Long-term debt 425,000 Total liabilities ? Shareholders equity
Preferred stock N/A Common stock (at par) 150,000 Paid-in capital in excess of par N/A Retained earnings 390,000
Total current assets
Fixed assets (gross)
Less: Accumulated depreciation
Net fixed assets
Total assets
Inventory __________________ Total current assets __________ Fixed assets (gross) __________ Total assets ________________ Notes payable ______________
?
? 240,000 ? ?
Total shareholders equity
Total liabilities and shareholders equity
?
?
Total current liabilities ______________ Total liabilities ____________________ Net fixed assets _____________
Total shareholders equity ____________ Total liabilities and SHE _____________

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