Question
Fill in the blanks- The other calculations are correct- Need help with the blanks The following information is available about the company: a.All sales during
Fill in the blanks- The other calculations are correct- Need help with the blanks
The following information is available about the company:
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 thebeginningof the current year were:
Accounts receivable$100,000
Inventory$220,000
Total assets$1,050,000
e.Selected financial ratios computed from the statements below for the current year are:
Earnings per share$1.92Debt-to-equity ratio0.800Accounts receivable turnover16.0Current ratio2.00Return on total assets10%Times interest earned ratio5.0Acid-test ratio1.13Inventory turnover9.0
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.)
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