adux Candy Company's income statement for the year ended December 31, 2024, reported interest expense of $21 million and income tax expense of $11 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 2024 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 1.0 2.0 1.0 7 times 25% 50% 5% 30% 13 times 20 times Required: Prepare a December 31, 2024, balance sheet for the Cadux Candy Company. Note: Enter your answers in millions. Round your intermediate calculations and final answer to the nearest whole million.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
CADUX CANDY COMPANY
Balance Sheet
At December 31, 2024
($ in millions)
Assets
Current assets:
Cash
Accounts receivable (net)
Inventory
7 times
Required:
Prepare a December 31, 2024, balance sheet for the Cadux Candy Company.
Note: Enter your answers in millions. Round your intermediate calculations and final answer to the nearest whole million.
Total current assets
Property, plant, and equipment (net)
Total assets
Liabilities and Shareholders' Equity
Current liabilities
Long-term liabilities.
Shareholders' equity
Total liabilities and shareholders' equity
25%
50%
5%
30%
13 times
20 times
Transcribed Image Text: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 CADUX CANDY COMPANY Balance Sheet At December 31, 2024 ($ in millions) Assets Current assets: Cash Accounts receivable (net) Inventory 7 times Required: Prepare a December 31, 2024, balance sheet for the Cadux Candy Company. Note: Enter your answers in millions. Round your intermediate calculations and final answer to the nearest whole million. Total current assets Property, plant, and equipment (net) Total assets Liabilities and Shareholders' Equity Current liabilities Long-term liabilities. Shareholders' equity Total liabilities and shareholders' equity 25% 50% 5% 30% 13 times 20 times
adux Candy Company's income statement for the year ended December 31, 2024, reported interest expense of $21 million and
income tax expense of $11 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 2024 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, 2024
(5 in millions)
Accounts receivable (net)
Inventory
Total current assets
Property, plant, and equipment (net)
Total assets
AL
1.0
2.0
1.0
Required:
Prepare a December 31, 2024, balance sheet for the Cadux Candy Company.
Note: Enter your answers in millions. Round your intermediate calculations and final answer to the nearest whole million.
7 times
25%
50%
5%
30%
13 times
20 times
Transcribed Image Text:adux Candy Company's income statement for the year ended December 31, 2024, reported interest expense of $21 million and income tax expense of $11 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 2024 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, 2024 (5 in millions) Accounts receivable (net) Inventory Total current assets Property, plant, and equipment (net) Total assets AL 1.0 2.0 1.0 Required: Prepare a December 31, 2024, balance sheet for the Cadux Candy Company. Note: Enter your answers in millions. Round your intermediate calculations and final answer to the nearest whole million. 7 times 25% 50% 5% 30% 13 times 20 times
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