Problem 15-21 Incomplete Statements; Analysis of Ratios [LO15-2, LO15-3, LO15-4, LO15-5, LO15-6]

The following information is available about the company:

a.	All sales during the year were on account.
b.	There was no change in the number of shares of common stock outstanding during the year.
c.	The 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	$	140,000
Inventory	$	260,000
Total assets	$	1,160,000

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

Earnings per share	$	2.64
Debt-to-equity ratio		0.850
Accounts receivable turnover		16.0
Current ratio		2.40
Return on total assets		10	%
Times interest earned ratio		5.0
Acid-test ratio		1.17
Inventory turnover		8.0

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 Statement

For the Year Ended March 31

Sales-$2,900,000

Cost of goods sold-?

Gross margin-?

Selling and administrative expenses?

Net operating income?

Interest expense $44,000

Net income before taxes?

Income taxes (40%)

Net income?