Financial statement construction via ratios. Incomplete financial statements of Lock Box, Inc., are presented below.
LOCK BOX, INC.
Income Statement
For the Year Ended December 31, 19X3
Sales
Cost of goods sold
Gross profit ....................$1,50,00,000 
Operating expenses & interest
Income before tax
Income taxes, 40%
Net income
LOCK BOX, INC.
Balance Sheet
December 31, 19X3
Assets
Cash
Accounts receivable 
Inventory
Property, plant, & equipment ............$80,00,000
Total assets..................$2,40,00,000 
Liabilities & Stockholders' Equity
Accounts payable 
Notes payable (short-term) .............$6,00,000
Bonds payable .................$46,00,000
Common stock .................$20,00,000
Retained earnings
Total liabilities & stockholders' equity........$2,40,00,000

Further information: 

1. Cost of goods sold is 60% of sales. All sales are on account. 
2. The company's beginning inventory is $5 million; inventory turnover is 4. 
3. The debt to total assets ratio is 70%. 
4. The profit margin on sales is 6%. 
5. The firm's accounts receivable turnover is 5. Receivables increased by $400,000 during the year. 
6. Calculate missing amounts, retained earnings, cash, income taxes, income before tax, operating expenses.

Instructions: 

Using the preceding data, complete the income statement and the balance sheet.