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Pepper Company provided the incomplete financial statements shown below as well as the following additional information: All sales during the year were on account. There
Pepper Company provided the incomplete financial statements shown below as well as the following additional information:
- All sales during the year were on account.
- There was no change in the number of shares of common stock outstanding during the year.
- The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change during the year.
- Selected balances at the beginning of the current year were:
Accounts receivable | $ 350,000 |
---|---|
Inventory | $ 460,000 |
Total assets | $ 7,040,000 |
e. Selected financial ratios computed from the statements below for the current year are:
Earnings per share | $ 5.76 |
---|---|
Debt-to-equity ratio | 0.920 |
Accounts receivable turnover | 16.0 |
Current ratio | 2.20 |
Return on total assets | 10% |
Times interest earned ratio | 10.00 |
Acid-test ratio | 1.20 |
Inventory turnover | 9.0 |
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.)
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