Incomplete Financial Statements for Tanner Company follow:

Tanner Company

Income Statement

For the year ended December 31

Sales 2,700,000

Cost of goods sold ?

Gross Margin ?

Selling and Administrative Expenses ?

Net Operating Income ?

Interest Expense 45,000

Net Income before taxes ?

Income tax (40%) ?

Net Income ?

Tanner Company

Statement Of Financial Position

December 31

Current Assets:

Cash ?

Accounts Receivable, net ?

Inventory ?

Total Current Assets ?

Plant and equipment, net ?

Total Assets ?

Current liabilities 250,000

Bonds payable, 10% ?

Total Liabilities ?

Stockholder's Equity:

Ordinary Shares, 2.50 par value ?

Retained Earnings ?

Total Stockholder's equity ?

Total Liabilities and SHE ?

The following additional information is available about the company:

a.Selected financial ratios computed from Tanner's Financial Statements are given below:

Current Ratio 2.40

Acid test ratio 1.12

Accounts receivable turnover 15.0

Inventory Turnover 6.0

Debt-to-equity ratio 0.875

Times interest earned 7.0

Earnings per share 4.05

Return on total Assets 14%

2.All sales during the year were on account.

3.The interest expense on the income statement relates TO THE BONDS PAYABLE; the amount of bonds outstanding did not change throughout the year.

d.There were no changes in the number of shares of ordinary shares outstanding during the year.

e.Selected balances at the beginning of the current year (January 1) were as follows:

Accounts receivable 160,000

Inventory 280,000

Total Assets 1,200,000

Required:Complete the Financial Statements.(The author of this problem is Brewer, therefore use the formula of brewer on Return on Average Total assets