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The following information is available about the company: a. Selected financial ratios computed from the statements above are given below: Current ratio 2.80 Acid-test ratio

The following information is available about the company:

a.

Selected financial ratios computed from the statements above are given below:

Current ratio

2.80

Acid-test ratio

1.15

Accounts receivable turnover

16.0

Inventory turnover

8.0

Debt-to-equity ratio

0.850

Times interest earned

8.0

Earnings per share

$

4.13

Return on total assets

12

%

b.

All sales during the year were on account.

c.

The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change throughout the year.

d.

There were no changes in the number of shares of common stock outstanding during the year.

e.

Selected balances at the beginning of the current year (January 1) were as follows:

Accounts receivable

$

300,000

Inventory

$

410,000

Total assets

$

2,870,000

Required:

Compute the missing amounts on the company's financial statements. (Input all amounts as positive values. Round your final answers to the nearest whole dollar amount. Omit the "$" sign in your response.)

Tanner Company Income Statement For the Year Ended December 31

Sales

$4,400,000

Cost of goods sold

Gross margin

Selling and administrative expenses

Net operating income

Interest expense

59,000

Net income before taxes

Income taxes (40%)

Net income

$

Tanner Company Balance Sheet December 31

Current assets:

Cash

$

Accounts receivable, net

Inventory

Total current assets

Plant and equipment, net

Total assets

$

Current liabilities

$260,000

Bonds payable, 10%

Total liabilities

Stockholders' equity:

Common stock, $2.60 par value

Retained earnings

Total stockholders' equity

Total liabilities and stockholders equity

$

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