Pepper Company provided the incomplete financial statements shown below as well as the following additional information:

1. All sales during the year were on account.
2. There was no change in the number of shares of common stock outstanding during the year.
3. The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change during the year.
4. Selected balances at the beginning of the current year were:

Accounts receivable	$	270,000
Inventory	$	360,000
Total assets	$	1,800,000

e. Selected financial ratios computed from the statements below for the current year are:

Earnings per share	$	2.30
Debt-to-equity ratio		0.875
Accounts receivable turnover		14.0
Current ratio		2.75
Return on total assets		18.0	%
Times interest earned ratio		6.75
Acid-test ratio		1.25
Inventory turnover		6.5

Required:

Compute the missing amounts on the company's financial statements. (Hint: Whats the difference between the acid-test ratio and the current ratio?) (Do not round intermediate calculations.)

Income Statement For year ending March 31

Sales = 4,200,000

COGS = ?

Gross Margin = ?

Sales and Admin expenses = ?

Net operating Income = ?

Interest expense = 80,000

Net income before income taxes =?

Income taxes (30%) =?

Net Income = ?

Balance Sheet March 31

Current Assets:

Cash ?

A/R net ?

Inventory ?

Total Current Assets ?

Plant and Equip. net ?

Total Assets ?

Liabilities:

Current Liabilites = 320,000

Bond payable (10%) = ?

Total Liabilities = ?

Stockholders Equity:

Common stock $5 par value ?

Retained Earnings =?

Total Stockholders Equity =?

Total Liabilities and Stockholders Equity =?