Question
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 |
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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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