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Pepper Company provided the incomplete nancial statements shown below as well as the following additional information: a. All sales during the year were on account.
Pepper Company provided the incomplete nancial statements shown below as well as the following additional information: a. All sales during the year were on account. b. "here was no change in the number of shares of common stock outstanding during the year. c. "he 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 5 268,800 Inventory 5 378,600 Total assets $ 6,621,250 e. Selected financial ratios computed from the statements below for the current year are: Earnings per share $ 4.62 Debttoequityr ratio 8.950 Accounts receivable turnover 28.0 Current ratio 2.40 Return on total assets 8% Times interest earned ratio 8.50 Acidtest ratio 1.11 Inventory turnover 8.0 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.) Sales $ 4,000,000 Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes {30%} Net operating income Interest expense Net income before taxes Income taxes (30%] Net income Current assets: Cash Accounts receivable, net Inventory Total current assets Plant and equipment. net Total assets Liabilities: Current liabilities $ Bonds payable, 10% Total lia bililies Stockholders' equity: Common stock. $2.90 par value 210,000 Retained eamings Total stockholders equity Total liabilities and stockholders' equity
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