Question
Cadux Candy Companys income statement for the year ended December 31, 2021, reported interest expense of $12 million and income tax expense of $122 million.
Cadux Candy Companys income statement for the year ended December 31, 2021, reported interest expense of $12 million and income tax expense of $122 million. Current assets listed in its balance sheet include cash, accounts receivable, and inventory. Property, plant, and equipment is the companys only noncurrent asset. Financial ratios for 2021 are listed below. Profitability and turnover ratios with balance sheet items in the denominator were calculated using year-end balances rather than averages.
Debt to equity ratio | 0.7 | |
Current ratio | 2.0 | |
Acid-test ratio | 1.0 | |
Times interest earned ratio | 17 | times |
Return on assets | 10 | % |
Return on equity | 17 | % |
Profit margin on sales | 5 | % |
Gross profit margin (gross profit divided by net sales) | 40 | % |
Inventory turnover | 8 | times |
Receivables turnover | 20 | times |
Required: Prepare a December 31, 2021, balance sheet for the Cadux Candy Company
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