Case 11-21 (Algo) Analytical case-complete an income statement and balance sheet using financial ratio data Financial...
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Case 11-21 (Algo) Analytical case-complete an income statement and balance sheet using financial ratio data Financial ratios computed for Whittaker Incorporated include the following: Current ratio Acid-test ratio Debt/equity ratio Inventory turnover Accounts receivable turnover Times interest earned Gross profit ratio Return on investment Earnings per share 1.7 to 1 1.2 to 1 1.6 to 1 3.2 times 5.2 times 4.50 times 20% 7.15% $ 3.63 All sales during the year were made on account. Cash collections during the year exceeded sales by $11,000, and no uncollectible accounts were written off. The balance of the accounts receivable account was $53,000 on January 1, 2023. No common stock was issued during the year. Dividends declared and paid during the year were $4,376. The balance of the inventory account was $73,500 on January 1, 2023. Interest expense on the income statement relates to the 12% bonds payable; $10,000 of these bonds were issued on May 1, 2023; the remaining amount of bonds payable were outstanding throughout the year. All bonds were issued at face amount. Required: a. Complete the income statement and balance sheet for Whittaker Incorporated. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Case 11-21 (Algo) Analytical case-complete an income statement and balance sheet using financial ratio data Financial ratios computed for Whittaker Incorporated include the following: Current ratio Acid-test ratio Debt/equity ratio Inventory turnover Accounts receivable turnover Times interest earned Gross profit ratio Return on investment Earnings per share 1.7 to 1 1.2 to 1 1.6 to 1 3.2 times 5.2 times 4.50 times 20% 7.15% $ 3.63 All sales during the year were made on account. Cash collections during the year exceeded sales by $11,000, and no uncollectible accounts were written off. The balance of the accounts receivable account was $53,000 on January 1, 2023. No common stock was issued during the year. Dividends declared and paid during the year were $4,376. The balance of the inventory account was $73,500 on January 1, 2023. Interest expense on the income statement relates to the 12% bonds payable; $10,000 of these bonds were issued on May 1, 2023; the remaining amount of bonds payable were outstanding throughout the year. All bonds were issued at face amount. Required: a. Complete the income statement and balance sheet for Whittaker Incorporated. Complete this question by entering your answers in the tabs below. Required A1 Required A2
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Income Statement for Whittaker Incorporated Amount Sales Less Cost of Goods Sold 80 of Sales Gross Profit Less Operating Expenses Operating Income Les... View the full answer
Related Book For
Financial Accounting
ISBN: 9780078110825
2nd Edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
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