Question I (15 marks) The following ratios have been computed for Piper Company for 2010. Profit margin ratio Times interest earned 20% 12 times 2.5:1 Current ratio Debt to total assets ratio 24% The 2010 financial statements for Piper Company with missing information follows: PIPER COMPANY Comparative Balance Sheet December 31, Assets 25,000 15,000 S 35,000 15,000 Cash Marketable securities... Accounts receivable (net) Inventory Property, plant, and equipment (net) ? (6) 50,000 ? (7) 50,000 160,000 -.... s_ 2(8) S310.000 Accounts payable Short-term notes payable Bonds payable Common stock Retained earnings.. $ 25,000 30,000 2 (9) 20,000 15,000 35,000 200,000 200,000 Total liabilities and stockholders' equity (10) $310.000 PIPER COMPANY Income Statement For the Year Ended December 31,2010 Net sales .unru Cost of goods sol.d. Gross profit.. Expenses: $200,000 100,.000 100,000 Depreciation expense Interest expense. Selling expenses.. Administrative expenses s0(5) 5,000 10,000 Total expenses Income before income taxes. Income tax expense. Net income. . Srggeeo (1) Page 2 of 16