Question 4 TEW COMPANY Balance Sheet As of December 31 ASSETS Cash Accounts receivable Inventory Net plant and equipment Total assets 20,000 80,000 50,000 250,000 400,000 40,000 60,000 130,00 100,000 10,000 60,000 400,000 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable Accrued expenses Long-term debt Common stock Paid-in capital Retained earnings Total liabilities and stockholders' equity TEW COMPANY Income Statement For the year ended December 31 Sales (all on credit) $ Cost of goods sold Gross profit Sales and administrative expenses Fixed lease expenses Depreciation Operating profit Interest expense Profit before taxes $ Taxes (35%) Net income $ Refer to the tables above. The firm's fixed asset turnover ratio is 1.3x 1.6x 0.5x 500,000 200,000 300,000 20,000 10,000 40,000 230,000 20,000 210,000 73,500 136,500 2.Ox