Question
Compute the missing amounts, and complete the statements of the Darius Co (Hint: Complete the Income Statement first) DARIUS COMPANY BALANCE SHEET AS OF DECEMBER
Compute the missing amounts, and complete the statements of the Darius Co (Hint: Complete the Income Statement first) DARIUS COMPANY BALANCE SHEET AS OF DECEMBER 31, 2016 Cash ? Current Liabilities ? Accounts Receivable (Net) ? 5.62% Long-Term Bonds Payable 4,200,000 Inventory ? Common Stock ? PPE (Net) ? Retained Earnings 2,430,000 Total Assets ? Total Liabilities and Stockholders' Equity 8,900,000 DARIUS COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2016 Net Sales ? Cost of Goods Sold ? Gross Profit ? SGA Expenses ? Income from Operations ? Interest Expense on Bonds Payable ? Income before Income Taxes ? Income Tax Expense ? Net Income 756,000 The following information is available about Darius Company's financial statements: 1. The Accounts Receivable Collection Period (DRO) is 42.3 Days 2. The Days Inventory Outstanding (DIO) is 55.6 Days 3. The Current Ratio for the firm is 4.56 4. The Net Profit Margin for the firm is 10.23% 5. The Operating Profit Margin for the firm is 16.71% 6. The Gross Profit Margin for the firm is 37.5% 7. The Return on Common Equity for the firm is 18.6% 8. The Income Tax Rate for the firm is 24.3%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started