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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
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 | $ | 320,000 |
Inventory | $ | 430,000 |
Total assets | $ | 1,950,000 |
|
e. | Selected financial ratios computed from the statements below for the current year are: |
Earnings per share | $ | 1.83 | |
Debt-to-equity ratio | 0.900 | ||
Accounts receivable turnover | 20.0 | ||
Current ratio | 3.00 | ||
Return on total assets | 8 | % | |
Times interest earned ratio | 4.0 | ||
Acid-test ratio | 1.17 | ||
Inventory turnover | 9.0 | ||
|
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.) |
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