P14-7 Presented below is an incomplete income statement and incomplete comparative Compute missing information statements of financial position of Bondi Corporation. Bondi Corporation Income Statement For the Year Ended December 31, 2014 given a set of ratios. (LO 5) Net sales Cost of goods sold Gross profit Operating expenses $10,500,000 ? ? 1,500,000 Income from operations Interest expense Income before income taxes Income tax expense Net income Bondi Corporation ? ? 550,000 $ ? Statements of Financial Position December 31 Assets 2014 2013 Plant assets (net) $4,620,000 $4,455,000 Current assets Inventory ? 1,720,000 Accounts receivable (net) Cash ? 950,000 480,000 375,000 Total current assets ? 3,045,000 Total assets $ ? $7,500,000 Equity and Liabilities 2014 2013 Share capital-ordinary, $1 par $3,000,000 $3,000,000 Retained earnings 400,000 375,000 Total equity 3,400,000 3,375,000 Long-term notes payable Current liabilities Total liabilities ? 3,300,000 ? 825,000 ? 4,125,000 Total equity and liabilities ? $7,500,000 Additional information: 1. The accounts receivable turnover for 2014 is 10 times. 2. All sales are on account. 3. The profit margin for 2014 is 14.5%. 4. Return on assets is 20% for 2014. 5. The current ratio on December 31, 2014, is 3.0. 6. The inventory turnover for 2014 is 4.2 times. Instructions Compute the missing information given the ratios above. Show computations. (Note: Start with one ratio and derive as much information as possible from it before trying another ratio. List all missing amounts under the ratio used to find the information.)