Financial statement construction via ratios. Incomplete financial statements of Lock Box Inc. are presented as follows:

LOCK BOX INC.

Income Statement

For the Year Ending December 31, 20X3

Sales $ ?

Cost of Goods Sold ?

Gross Profit $ 15,000,000

Operating Expenses and Interest ?

Income Before Taxes $ ?

Income taxes, 40% ?

Net income $ ?

LOCK BOX, INC.

Balance Sheet

December 31, 20X3

Assets

Cash $ ?

Accounts Receivable ?

Inventory ?

Property, Plant, and Equipment 8,000,000

Total assets $ 24,000,000

Liabilities and Stockholders? Equity

Accounts Payable $ ?

Notes Payable: Short-Term 600,000

Bonds Payable 4,600,000

Common Stock 2,000,000

Retained Earnings ?

Total Liabilities and Stockholders? Equity $ 24,000,000

Further information is the following:

? Cost of goods sold is 60.3% of sales. All sales are on account.

? The company?s beginning inventory is $5 million; inventory-turnover ratio is 4.

? The debt-to-total-assets ratio is 70%.

? The profit margin on sales is 6%.

? The firm?s accounts-receivable-turnover ratio is 5. Receivables increased by $400,000 during the year.

Instructions

Using the preceding data, complete the income statement and the balance sheet.

Financial statement construction via ratios. Incomplete financial statements of Lock Box Inc. are presented as follows: LOCK BOX INC. Income Statement For the Year Ending December 31, 20X3 Sales Cost of Goods Sold Gross Profit Operating Expenses and Interest Income Before Taxes Income taxes, 40% Net income $? ? $ 15,000,000 ? $? ? $? LOCK BOX, INC. Balance Sheet December 31, 20X3 Assets Cash $? Accounts Receivable ? Inventory ? Property, Plant, and Equipment 8,000,000 Total assets $ 24,000,000 Liabilities and Stockholders' Equity Accounts Payable $? Notes Payable: Short-Term 600,000 Bonds Payable 4,600,000 Common Stock 2,000,000 Retained Earnings ? Total Liabilities and Stockholders' Equity $ 24,000,000 Further information is the following: Cost of goods sold is 60.3% of sales. All sales are on account. The company's beginning inventory is $5 million; inventory-turnover ratio is 4. The debt-to-total-assets ratio is 70%. The profit margin on sales is 6%. The firm's accounts-receivable-turnover ratio is 5. Receivables increased by $400,000 during the year. Instructions Using the preceding data, complete the income statement and the balance sheet