b. Complete the income statement and balance sheet for a Company by using following additionalinformation:Additional InformationCurrent ratio3:1$ 500DepreciationNet Profit marginTotal Liabilities to Total EquityAverage collection periodInventory Turnover ratioNo of Days in a year7%1:145 days3:1360 daysIncome statement for the Year 20XX (Inthousands)Sales$ 100,000Cost of Goods soldGross profitSelling?andadministrativeexpensesInterest expense4,000Profit before tax?Taxes (30% rate)Profit after taxes1Balance Sheet As on June 30, 20XX (In thousands)Cash$ 5,000 Accounts payable$ 4,000Accounts receivable? Bank loan?Inventories? Accruals2,000Current Assets?Current Liabilities?Long-term Debt26,500Net Fixed Assets? Common stock &Retained37,500EarningsTotal Assets?Total Liabilities and Equity?

Current ratio = current assets(CA)/current liabilities (CL) CA/CL = 3 .................(1) NP…

b. Complete the income statement and balance sheet for a Company by using following additional information: Additional Information Current ratio 3:1 $ 500 Depreciation Net Profit margin Total Liabilities to Total Equity Average collection period Inventory Turnover ratio No of Days in a year 7% 1:1 45 days 3:1 360 days Income statement for the Year 20XX (In thousands) Sales Cost of Goods sold $ 100,000 Gross profit Selling ? and administrative ? expenses Interest expense 4,000 Profit before tax ? Taxes (30% rate) Profit after taxes ? ?

b. Complete the income statement and balance sheet for a Company by using following additional information: Additional Information Current ratio 3:1 $ 500 Depreciation Net Profit margin Total Liabilities to Total Equity Average collection period Inventory Turnover ratio No of Days in a year 7% 1:1 45 days 3:1 360 days Income statement for the Year 20XX (In thousands) Sales Cost of Goods sold $ 100,000 Gross profit Selling ? and administrative ? expenses Interest expense 4,000 Profit before tax ? Taxes (30% rate) Profit after taxes ? ?

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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