adux Candy Company's income statement for the year ended Dece come tax expense of $26 million. Current assets listed in its baland roperty, plant, and equipment is the company's only noncurrent ass urnover ratios with balance sheet items in the denominator were cal Debt to equity ratio Current ratio Acid-test ratio Times interest earned ratio Return on assets Return on equity Profit margin on sales. Gross profit margin 0.6 2.0 1.0 15 times 15% 24% 5%
adux Candy Company's income statement for the year ended Dece come tax expense of $26 million. Current assets listed in its baland roperty, plant, and equipment is the company's only noncurrent ass urnover ratios with balance sheet items in the denominator were cal Debt to equity ratio Current ratio Acid-test ratio Times interest earned ratio Return on assets Return on equity Profit margin on sales. Gross profit margin 0.6 2.0 1.0 15 times 15% 24% 5%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cadux Candy Company's income statement for the year ended December 31, 2021, reported interest expense of $4 million and
income tax expense of $26 million. Current assets listed in its balance sheet include cash, accounts receivable, and inventory.
Property, plant, and equipment is the company's only noncurrent asset. Financial ratios for 2021 are listed below. Profitability and
turnover ratios with balance sheet items in the denominator were calculated using year-end balances rather than averages.
Debt to equity ratio
Current ratio
Acid-test ratio
Times interest earned ratio
Return on assets
Return on equity
Profit margin on sales
Gross profit margin
(gross profit divided by net sales)
Inventory turnover
Receivables turnover
Assets
Current assets:
Cash
CADUX CANDY COMPANY
Balance Sheet
At December 31, 2021
(All values are in millions)
Accounts receivable (net)
Inventories
Total current assets
Property, plant, and equipment (net)
Required:
Prepare a December 31, 2021, balance sheet for the Cadux Candy Company. (Enter your answers in millions. Round your
intermediate calculations and final answer to the nearest whole million.)
Total assets
Liabilities and Shareholders' Equity
Current liabilities
Long-term liabilities
Shareholders' equity
Total liabilities and shareholders' equity
$
0.6
2.0
$
1.0
15 times.
15%
24%
5%
25%
15 times
22 times
0
0
0
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