Ch 15 Homework Saved Help 4 Pepper Company provided the incomplete financial statements shown below as well as the following additional information: 10 points 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: Accounts receivable Inventory Total ante $ 160,000 $ 210,000 $1,200,000 e Selected financial ratios computed from the statements below for the current year are $4.05 0.875 15.0 2.40 Warninge per share Debt-to-equity ratio Accounts receivable turnover Current ratio Return on total assets Times interest earned ratio Aoid-test ratio Inventory turnover 5.50 1.12 6. 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.) Pepper Industries Income Statement For the Year Ended March 31 Sales $ 2,700,000 Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income 45,000 Pepper Industries Balance Sheet March 31 Current assets: Cash Accounts receivable, net Inventory Total current assets Plant and equipment, net Total assets $ 250,000 Liabilities: Current liabilities Bonds payable, 10% Total liabilities Stockholders' equity: Common stock, $2.50 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 800,000 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: Accounts receivable Inventory Total assets $ 160,000 $ 280,000 $1,200,000 e. Selected financial ratios computed from the statements below for the current year are: Earnings per share Debt-to-equity ratio Accounts receivable turnover Current ratio Return on total assets Times interest earned ratio Acid-test ratio Inventory turnover $ 4.05 0.875 15.0 2.40 140 5.50 1.12 6.0