Problem 16-21 (Algo) Incomplete Statements; Ratios Analysis [LO16-2, LO16-3, LO16-4, LO16-5, LO16-6] Pepper Company provided the incomplete financial statements shown below as well as the following additional information: 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 Inventory Total assets $ 140,000 $ 260,000 $ 2,370,000 e. Selected financial ratios computed from the statements below for the current year are: Earnings per share Debt-to-equity ratio Accounts receivable turnover Current ratio $ 2.64 0.850 16.0 2.40 10% Times interest earned ratio 6.25 1.17 8.0 Return on total assets Acid-test ratio Inventory turnover 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?) Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Compute the missing amounts on the company's financial statements. (Hint: What's the difference between the acid-test ratio and the current ratio?) Note: Do not round intermediate calculations. Pepper Company Sales Cost of goods sold Income Statement For the Year Ended March 31 Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $ 2,900,000 44,000 < Income Statement Balance Sheet > Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Compute the missing amounts on the company's financial statements. (Hint: What's the difference between the acid-test ratio and the current ratio?) Note: Do not round intermediate calculations. Current assets: Pepper Company Balance Sheet March 31 Cash Accounts receivable, net Inventory Total current assets Plant and equipment, net Total assets Liabilities: Current liabilities Bonds payable, 10% Total liabilities Stockholders' equity: Common stock, $3.00 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 240,000