b. Complete the income statement and balance sheet for a Company by using following Additional Information Current ratio. 3:1Depreciation. $ 500Net Profit margin. 7 %Total Liabilities to Total Equity 1:1 Average collection period 45 days Inventory Turnover ratio. 3:1No of Days in a year 360 days 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??andadministrative?еxpensesInterest expense4,000Profit before tax?Taxes (30% rate)Profit aîter taxes?

Financial Ratio:- It is a ratio which helps in analyzing the performance of a company and helps in…

Answered: Complete the income statement and…

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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b. Complete the income statement and balance sheet for a Company by using following Additional Information

Current ratio. 3:1

Depreciation. $ 500

Net Profit margin. 7 %

Total Liabilities to Total Equity 1:1 Average collection period 45 days Inventory Turnover ratio. 3:1

No of Days in a year 360 days

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
$ 100,000
Cost of Goods sold
Gross profit
Selling
?
?
and
administrative
?
еxpenses
Interest expense
4,000
Profit before tax
?
Taxes (30% rate)
Profit aîter taxes
?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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