PROBLEM 1- Understanding Financial Statement Relations Drvidend and Balanae Sheet Construction You are planning to analyze Voltek Company's December 31, Year 6, balance sheet. The following information is available: 1. Beginning and ending balances are identical for both accounts receivable and inventory 2. Net income is $1,300. 3, Times interest earned is 5 (income taxes are zero). Company has 5% bonds outstanding and issued at par. 4. Net profit margin is 10% Gross profit margin is 30%. Inventory turnover is 5. 5. Days' sales in receivables is 72 days. 6. Sales to end-of-year working capital is 4. Current ratio is 1.5 7. Acid-test ratio is 1.0 (excludes prepaid expenses). 8. Plant and equipment (net) is $6,000. It is one-third depreciated. 9. Dividends paid on 8% nonparticipating preferred stock are $40. There is no change in common shares outstanding during Year 6. Preferred shares were issued two years ago at par