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PLEASE WRITE THE ANS. ON A COMPUTER, HAND WRITING IS NOT ACCEPTABLE Exercise 189 The following ratios have been computed for Mason Company for 2017.
PLEASE WRITE THE ANS. ON A COMPUTER, HAND WRITING IS NOT ACCEPTABLE
Exercise 189 The following ratios have been computed for Mason Company for 2017. 12.5 % 8 times Profit margin Times interest earned Receivables turnover Acid-test ratio 4 times 2:1 Current ratio 3:1 Debt to assets ratio 20 % Use the above ratios and information from the Mason Company financial statements to fill in the missing information on the financial statements. Mason Company's 2017 financial statements with missing information follow: MASON COMPANY Comparative Balance Sheet December 31 2017 2016 Assets Cash $ 30,000 $ 45,000 10,000 25,000 Short-term investments Accounts receivable (net) 40,000 Inventory 50,000 Property, plant, and equipment (net) 200,000 160,000 Total assets $320,000 Liabilities and stockholders' equity Accounts payable Short-term notes payable $ 30,000 40,000 35,000 Bonds payable 20,000 Common stock 200,000 200,000 60,000 35,000 Retained earnings Total liabilities and stockholders' equity $320,000 MASON COMPANY Income Statement For the Year Ended December 31, 2017 Net sales Cost of goods sold Gross profit Expenses $200,000 75,000 125,000 Depreciation expense Interest expense Selling expenses Administrative expenses Total expenses 5,000 8,000 12,000 Income before income taxes Income tax expense Net incomeStep by Step Solution
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