P14-7A Presented below is an incomplete income statement and an incomplete comparative balance sheet of Cotte Corporation. Additional information: The receivables turnover for 2012 is 10 times. All sales are on account. The profit margin for 2012 is 14.5%. Return on assets is 22% for 2012. The current ratio on December 31, 2012, is 3.0. The inventory turnover for 2012 is 4.8 times. Compute the missing information given the ratios above. (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.) (Enter all amounts as positive amounts and subtract where necessary.) COTTE CORPORATION Income Statement For the Year Ended December 31, 2012 Sales $11,000,000 Cost of goods sold Gross profit Operating expenses 1,665,000 Income from operations Other expenses and losses Interest expense Income before income taxes Income tax expense 560,000 Net income $ COTTE CORPORATION Balance Sheets December 31 Assets 2012 2011 Current assets Cash $ 450,000 $ 375,000 Accounts receivable (net) 950,000 Inventory 1,720,000 Total current assets 3,045,000 Plant assets (net) 4,620,000 3,955,000 Total assets $ $7,000,000 Liabilities and Stockholders' Equity Current liabilities $ $825,000 Long-term notes payable 2,800,000 Total liabilities 3,625,000 Common stock $1 par 3,000,000 3,000,000 Retained earnings 400,000 375,000 Total stockholders' equity 3,400,000 3,375,000 Total liabilities and stockholders' equity $ $7,000,000