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	$	330,000
Inventory	$	440,000
Total assets	$	1,850,000

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

Earnings per share	$	3.72
Debt-to-equity ratio		0.870
Accounts receivable turnover		16.0
Current ratio		2.00
Return on total assets		10	%
Times interest earned ratio		5.5
Acid-test ratio		1.18
Inventory turnover		9.0

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.)

Pepper IndustriesIncome StatementFor the Year Ended March 31Sales$4,700,000Cost of goods soldGross marginSelling and administrative expensesNet operating incomeInterest expense62,000Net income before taxesIncome taxes (40%)Net income

Pepper IndustriesBalance SheetMarch 31Current assets:CashAccounts receivable, netInventoryTotal current assetsPlant and equipment, netTotal assetsLiabilities:Current liabilities$250,000Bonds payable, 10%Total liabilitiesStockholders equity:Common stock, $2.70 par valueRetained earningsTotal stockholders equityTotal liabilities and stockholders' equity

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