Additional information for Hercules Construction follows:

The equity ratio was $40\%$; the debt ratio was $60\%.$

The only interest expense was on the long$-$term debt.

The beginning inventory was $P150,000$; the inventory turnover was $4\mathrm{.}8$ times.

The current ratio was $2$ to $1$ ; quick ratio was $1$ to $1.$

The beginning balance in accounts receivable was $P80,000$; the accounts receivable turnover

for the year was $12\mathrm{.}8$ times. All sales were made on account.

Instructions: The accountant asked you to help complete the financial statements of Hercules

Construction using only the information available. Present supporting computations and

explanations for the amounts appearing in the balance sheet and the income statement.

HERCULES CONSTRUCTION

INCOME STATEMENT

DEC. $31,20$

HERCULES CONSTRUCTION

BALANCE SHEET

DECEMBER $31,20$

$($In thousand$)$