Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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:

image text in transcribed

image text in transcribed

image text in transcribed

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 income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Comparative International Accounting Subsequent Edition

Authors: Christopher Nobes, R. H. Parker

5th Edition

0137364636, 9780137364633

More Books

Students also viewed these Accounting questions

Question

=+b) Find the predicted value for the year 2012. Is it realistic?

Answered: 1 week ago

Question

1. Describe a comprehensive approach to retaining employees.pg 87

Answered: 1 week ago