Question
The following ratios are computed from the financial statements of the Coates Company. Compute the missing amounts on the firm's financial statements. Quick Ratio 1.0
The following ratios are computed from the financial statements of the Coates Company. Compute the missing amounts on the firm's financial statements.
Quick Ratio | 1.0 |
| Current Ratio | 2.0 |
Accounts Receivable Turnover | 12 |
| Debt Ratio (Debt/Total Assets) | 40% |
Times Interest Earned | 4 times |
| Inventory Turnover | 8 |
Note: 1) For ratios that call for an average balance, use the year-end value only.
2) All sales were on credit.
Coates Company Income Statement For the year ended December 31, 2021 | |
Sales | ? |
Less: Cost of Goods Sold | ? |
Gross Margin | 1,000,000 |
Less: Operating Expenses | ? |
E.B.I.T. | ? |
Less: Interest Expense | 100,000 |
Net Income Before Taxes | ? |
Less Taxes at 30% | ? |
Net Income | ? |
|
|
Coates Company Balance Sheet As of December 31, 2021 | |
Cash | ? |
Accounts Receivable | ? |
Inventory | ? |
Total Current Assets | ? |
Plant and Equipment (net) | 700,000 |
Total Assets | 1,500,000 |
|
|
Accounts Payable (current liabilities) | ? |
Bonds Payable | ? |
Total Liabilities | ? |
Common Stock | 300,000 |
Retained Earnings | ? |
Total Equity | ? |
Total Liabilities and Equity | ? |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started