Pepper Company provided the incomplete financial statements shown below as well as the following additional information:...
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Pepper Company provided the incomplete financial statements shown below as well as the following additional information: a. All sales during the year were on account. b. There was no change in the number of shares of common stock outstanding during the year. c. The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change during the year. d. Selected balances at the beginning of the current year were: Accounts receivable Inventory Total assets $ 180,000 $ 290,000 $ 3,756,500 e. Selected financial ratios computed from the statements below for the current year are: Earnings per share Debt-to-equity ratio $ 3.29 0.800 Accounts receivable turnover Current ratio 20.0 2.70 Return on total assets 10% Times interest earned ratio 8.00 Acid-test ratio 1.15 8.0 Inventory turnover Required: Compute the missing amounts on the company's financial statements. (Hint: What's the difference between the acid-test ratio and the current ratio?) (Do not round intermediate calculations.) Sales Cost of goods sold Pepper Industries Income Statement For the Year Ended March 31 Gross margin Selling and administrative expenses Not onerating income $ 3,200,000 Pepper Company provided the incomplete financial statements shown below as well as the following additional information: a. All sales during the year were on account. b. There was no change in the number of shares of common stock outstanding during the year. c. The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change during the year. d. Selected balances at the beginning of the current year were: Accounts receivable Inventory Total assets $ 180,000 $ 290,000 $ 3,756,500 e. Selected financial ratios computed from the statements below for the current year are: Earnings per share Debt-to-equity ratio $ 3.29 0.800 Accounts receivable turnover Current ratio 20.0 2.70 Return on total assets 10% Times interest earned ratio 8.00 Acid-test ratio 1.15 8.0 Inventory turnover Required: Compute the missing amounts on the company's financial statements. (Hint: What's the difference between the acid-test ratio and the current ratio?) (Do not round intermediate calculations.) Sales Cost of goods sold Pepper Industries Income Statement For the Year Ended March 31 Gross margin Selling and administrative expenses Not onerating income $ 3,200,000
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