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2 Pepper Company provided the incomplete financial statements shown below as well as the following additional information a. All sales during the year were on

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2 Pepper Company provided the incomplete financial statements shown below as well as the following additional information a. All sales during the year were on account b. There was no change in the number of shares of common stock outstanding during the year c. The interest expense on the income statement relates to the bonds payable the amount of bonds outstanding did not change during the year d. Selected balances at the beginning of the current year were: bok Accounts receivable Inventory Total assets ences 5 320,000 $ 430,000 $2.500.000 e. Selected financial ratios computed from the statements below for the current year are Earnings per share Debt-to-equity Patio Accounts receivable surower Current ratio Return on totalets Tines interest earned ratio Acid-test ratio Inventory turnover 31.83 8.900 20.6 SO RY 4.00 1.17 9. Required: Compute the missing amounts on the company's financial statements. (Hint: What's the difference between the acid-test ratio and the current ratio) (Do not round Intermediate calculations.) S4,600.000 Pepper Industries Income Statement For the Year Ended March 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Pepper Industries Balance Sheet March 31 Current assets Cash Accounts receivable, net Inventory Total current assets Plant and equipment, net Total assets Liabilities: Current liabilities 200,000 Bonds payable 10% Total liabilities Stockholders' equity Common stock, $2.60 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity a Selected balances at the beginning of the current year were Accounts receivable Inventory Totali assets $ 320,000 430,000 $ 2,560,000 e. Selected financial ratios computed from the statements below for the current year are: Earnings per share Debtto-equity ratio Accounts receivable turnover Current ratio Return on total assets Times, interest earned ratio Acid test ratio Inventory turnover $ 1.83 0.900 20.0 3.00 8% 4.00 1.17 9.0 N Required

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