Use the following partially blank Income Statement and Balance Sheet plus the ratios provided for Questions 1 - 6.Your task is to work backwards, using the ratios, to fill in the missing information on the financial statements.Once you have completed the Income Statement and Balance Sheet, answer Questions 1 - 6.

Cracker Barrel Foods Corp

Income Statement

January 1 - December 31st, 2020

Revenues $6,227,844

Cost of Goods Sold $3,844,576

Expenses $1,298,668

Depreciation $362,325

EBIT $722,275

Interest Expense $

Taxable Income $

Taxes @ 30% $

Net Income $

Cracker Barrel Foods Corp

Balance Sheet

As of December 31st, 2020

Current Assets 2020 Current Liabilities 2020

Cash $10,445 A/P $330,000

A/R $ N/P $250,000

Inventory $ Other Current Liab. $1,250,000

Other Current Assets $812,000 Total Current Liab. $

Total Current Assets $ Long Term Debt $1,389,615

Net Fixed Assets $3,129,754 Common Stock $1,761,044

Retained earnings $

Total Assets $ Total Liab. & O.E. $

Cracker Barrel Foods Corp

Financial Ratios

2020

Liquidity Ratios Cracker Barrel

1.Current Ratio 1.330

2.Quick Ratio 1.117

3.Cash Ratio 0.004

Solvency Ratios

4.Total Debt Ratio 0.58

5.Debt/Equity Ratio 1.37

6.Equity Multiplier 2.37

Asset Management Ratios

7.Times Interest Earned 4.82

8.Cash Coverage (EBITDA) Ratio 7.23

9.Inventory Turnover Ratio 9.88

10.Days Sales in Inventory 36.93

11.Receivables Turnover Ratio 5.10

12.Days Sales in A/R (Average Collection Period) 71.61

13.NWC Turnover 10.33

14.Fixed Asset Turnover 1.99

15.Total Asset Turnover 1.12

Profitability Ratios

16.Profit Margin 6.4%

17.Return on Assets (ROA) 7.2%

18.Return on Equity (ROE) 17.1%

Questions related to Ratios and the Financial Statements (show the steps)

1.What is the correct value for Interest Expense?

2.What is the correct value for Net Income?

3.What is the correct value for Accounts Receivable (A/R)?

4.What is the correct value for Inventory?

5.What is the correct value for Total Assets?

6.What is the correct value for Current Liabilities?