The following information is available about the company:
| a. |
Selected financial ratios computed from the statements above are given below: |
|
|
|
|
| Current ratio |
|
2.60 |
|
| Acid-test ratio |
|
1.19 |
|
| Accounts receivable turnover |
|
16.0 |
|
| Inventory turnover |
|
6.0 |
|
| Debt-to-equity ratio |
|
0.900 |
|
| Times interest earned |
|
8.0 |
|
| Earnings per share |
$ |
4.83 |
|
| Return on total assets |
|
12 |
% |
|
| b. |
All sales during the year were on account. |
| c. |
The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change throughout the year. |
| d. |
There were no changes in the number of shares of common stock outstanding during the year.
|
| e. |
Selected balances at the beginning of the current year (January 1) were as follows: |
|
|
|
| Accounts receivable |
$ |
160,000 |
| Inventory |
$ |
280,000 |
| Total assets |
$ |
2,160,000 |
|
| Required: |
|
Compute the missing amounts on the company's financial statements. (Input all amounts as positive values. Round your final answers to the nearest whole dollar amount. Omit the "$" sign in your response.)
|
Tanner Company
Income Statement
For the Year Ended December 31 |
| Sales |
$3,100,000 |
| Cost of goods sold |
|
|
|
| Gross margin |
|
| Selling and administrative expenses |
|
|
|
| Net operating income |
|
| Interest expense |
46,000 |
|
|
| Net income before taxes |
|
| Income taxes (40%) |
|
|
|
| Net income |
$ |
|
|
|
Tanner Company
Balance Sheet
December 31 |
| Current assets: |
|
| Cash |
$ |
| Accounts receivable, net |
|
| Inventory |
|
|
|
| Total current assets |
|
| Plant and equipment, net |
|
|
|
| Total assets |
$ |
|
|
|
|
| Current liabilities |
$260,000 |
| Bonds payable, 10% |
|
|
|
| Total liabilities |
|
|
|
| Stockholders' equity: |
|
| Common stock, $2.60 par value |
|
| Retained earnings |
|
|
|
| Total stockholders' equity |
|
|
|
| Total liabilities and stockholders' equity |
$ |
|
|