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The following ratios have been computed for Whispering Winds Company for 2022. Profit margin ratio 20 % Current ratio 2.5 :1 Times interest earned 12
The following ratios have been computed for Whispering Winds Company for 2022.
Profit margin ratio 20 % Current ratio 2.5 :1
Times interest earned 12 times Debt to assets ratio 24 %
Accounts receivable turnover 5 times
Use the above ratios and information from the Whispering Winds Company financial statements to fill in the missing information on the financial statements. The 2022 financial statements for Whispering Winds Company with missing information follows:
The following ratios have been computed for Whispering Winds Company for 2022. 20 % Current ratio 2.5 : 1 Profit margin ratio Times interest earned Accounts receivable turnover 12 times Debt to assets ratio 24 % 5 times Use the above ratios and information from the Whispering Winds Company financial statements to fill in the missing information on the financial statements. The 2022 financial statements for Whispering Winds Company with missing information follows: WHISPERING WINDS COMPANY Comparative Balance Sheet December 31, 2022 2021 Assets Cash $ 29,500 $ 41,300 Debt Investments 17,700 17,700 Accounts receivable (net) 59,000 Inventory 59,000 Property, plant, and equipment (net) 236,000 188,800 Total assets $ Liabilities and stockholders' equity Accounts payable $ 17,700 $ 29,500 Short-term notes payable 41,300 35,400 Bonds payable 23,600 Common stock 236,000 236,000 Retained earnings 55,460 41,300 Total liabilities and stockholders' equity $365,800 $236,000 WHISPERING WINDS COMPANY Income Statement For the Year Ended December 31, 2022 Net sales Cost of goods sold Gross profit Expenses: 118,000 118,000 Depreciation expense $ Interest expense 5,900 Selling expenses 11,800 Administrative expenses 17.700 Total expenses Income before income taxes Income tax expense Net incomeStep by Step Solution
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