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The following information is available about the company: a. Selected financial ratios computed from Tanners financial statements are given below: Current ratio 2.60 Acid-test ratio
The following information is available about the company:
a. | Selected financial ratios computed from Tanners financial statements are given below: |
Current ratio | 2.60 | ||
Acid-test ratio | 1.19 | ||
Accounts receivable turnover | 16.0 | ||
Inventory turnover | 6.0 | ||
Debt-to-equity ratio | 0.900 | ||
Times interest earned | 8.0 | ||
Earnings per share | $ | 4.83 | |
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 | $ | 160,000 |
Inventory | $ | 280,000 |
Total assets | $ | 2,160,000 |
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.) |
Tanner Company Income Statement For the Year Ended December 31 | |
Sales | $3,100,000 |
Cost of goods sold | ____?______ |
Gross margin | _____?______ |
Selling and administrative expenses | _____?______ |
Net operating income | ______?______ |
Interest expense | 46,000 |
Net income before taxes | ________?_____ |
Income taxes (40%) | ________?____ |
Net income | ?____________$ |
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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