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Someone PLEASE HELP with explanations of how you reach the answers!! Please, please! :( I have been going at this question for hours and I
Someone PLEASE HELP with explanations of how you reach the answers!! Please, please! :( I have been going at this question for hours and I am just stumped. I don't understand how to use the ratios to reach the balance sheet amounts and desperately need help with this one. Thank you in advance!!
Cadux Candy Company's income statement for the year ended December 31, 2021, reported interest expense of $21 million and income tax expense of $11 million. Current assets listed in its balance sheet include cash, accounts receivable, and inventory. Property, plant, and equipment is the company's only noncurrent asset. Financial ratios for 2021 are listed below. Profitability and turnover ratios with balance sheet items in the denominator were calculated using year-end balances rather than averages. Debt to equity ratio Current ratio Acid-test ratio Times interest earned ratio Return on assets Return on equity Profit margin on sales Gross profit margin (gross profit divided by net sales) Inventory turnover Receivables turnover 1.0 2.0 1.0 7 times 25% 50% 5% 30% 13 times 20 times Required: Prepare a December 31, 2021, balance sheet for the Cadux Candy Company. (Enter your answers in millions. Round your intermediate calculations and final answer to the nearest whole million.) CADUX CANDY COMPANY Balance Sheet At December 31, 2021 (All values are in millions) Assets Current assets: Cash Accounts receivable (net) Inventories Total current assets Property, plant, and equipment (net) Total assets Liabilities and Shareholders' Equity Current liabilities Long-term liabilities Shareholders' equity Total liabilities and shareholders' equity
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