The solutions were already given in our book but I got different answers when I answered them and would like to know how the balance sheet and income statement were derived? I need a step by step solution.

The accountant of Best Beauty Parlor had prepared the funancial statements of the company. However, while washing the hair of his aunt, the owner accidentally dropped the ledger and financial statements into a bowl of black dye, ruining the accounting records. Fortunately, he was able to gather some information from an old ledger as follows: - The balances in accounts receivable and accounts payable at the end of 2013 were the same as their respective ending balances in 2012. The net profit margin was 7%, the gross profit ratio was 55%, and rturn on assets was 4%, Total equity was twice the total debt. Best is in the 50% tax bracket. Preferred dividends amounted to P75,000. The quick ratio was 7 to 2 , and the current ratio was 5 to 1 . Interest expense amounted to P150,000, and EPS for common stock was P1.00 per share. The days' sales in receivables were 115.2, and the average payment period was 72 days. Purchases for the year amounted to P 1,225,000. The inventory was P325,000 on January 1, 2013. Times interest earned was 3.8 times. The ratio of the accumulated depreciation to the cost of fixed assets was 0.05 to 1 . The ratio of selling expenses to sales is 20%, and the ratio of cash to accounts receivable is 75%. No-par common stock was issued at an average price of P7.88.- The par value of the 5\% preferred stock is 75% of the issuance price. Required: 1. Prepare, in good form, the December 31, 2013 balance sheet and a multiple-step income statement for Best Beauty Parlor. In addition to the accounts divulged in the problem, you should include accounts for prepaid expenses, accrued expenses, and administrative Best Beauty Parlor Balance Sheet 8=