(Find the missing information, LO 2) Use the information provided about Kynocks Inc. (Kynocks) to determine the missing information from its December 31, 2005 balance sheet and for the income statement for the year ended December 31, 2005. For all final amounts determined for the balance sheet and income statement, round to the thousands of dollars.

Additional information:
e No dividends were paid during the year.
e There are no preferred shares outstanding.
e All sales and purchases of inventory are on credit.
e No new common shares were issued during the year and no common shares were repurchased during the year.
e Tax rate = 20.63%.
e Gross margin percentage = 40%.
e Profit margin percentage = 2%.
e Interest coverage ratio = 6.2085.
e EPS = $0.40.
e ROA= 9.85.
e Inventory turnover ratio = 5.474.
e Accounts receivable turnover ratio = 21.739.
e Accounts payable turnover ratio = 7.589.
e Debt-to-equity ratio = 0.733.
e Current ratio = 2.222.

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Kynocks Inc. Balance Sheets As of the Years Ended December 31, 2004 and 2005 Cash Accounts receivable Inventory Capital assets (net) Total assets: Accounts payable Long-term debt Capital stock on January 1, 2005 Retained earnings on January 1, 2005 Total liabilities and shareholders' equity: 2005 2004 $110,000 105,000 248,000 146,000 $609,000 $184,000 100,000 75,000 250,000 $609,000