Financial ratios computed for Whittaker Inc. include the following:Current ratio1.7 to 1Acid-test ratio1.4 to 1Debt/equity ratioInventory turnoverAccounts receivable turnoverTimes interest earnedGross profit ratioReturn on investment2.5 to 12.5 times5.9 times4.85 times40012.57%Earnings per share$11.95All sales during the year weaccounts were written off.• The balance of the accounts receivable account was $46,000 on January 1, 2020.• No common stock was issued during the year.• Dividends declared and paid during the year were $5,324.• The balance of the inventory account was $71,784 on January 1, 2020.• Interest expense on the income statement relates to the 15% bonds payable; $10,000 of these bonds were issued on May 1, 2020;the remaining amount of bonds payable were outstanding throughout the year. All bonds were issued at face amountmade on account. Cash coctions during the year exceeded sales by $18,000, and no uncollectibleRequired:a. Complete the income statement and balance sheet for Whittaker Inc.WHITTAKER INC.Income StatementFor the Year Ended December 31, 2020SalesCost of goods soldGross profitOperating expensesIncome from operationsInterest expenseIncome before taxes|Income taxes (20%)Net income

The Income statement is one of three basic financial statements that describe a company's financial…

Financial ratios computed for Whittaker Inc. include the following: Current ratio Acid-test ratio Debt/equity ratio Inventory turnover Accounts receivable turnover Times interest earned Gross profit ratio Return on Investment tornings per share 1.7 to 1 1.4 to 1 2.5 to 1 2.5 times 5.9 times 4.85 times 12.57% $11.95 • All sales during the year were made on account. Cash collections during the year exceeded sale

Financial ratios computed for Whittaker Inc. include the following: Current ratio Acid-test ratio Debt/equity ratio Inventory turnover Accounts receivable turnover Times interest earned Gross profit ratio Return on Investment tornings per share 1.7 to 1 1.4 to 1 2.5 to 1 2.5 times 5.9 times 4.85 times 12.57% $11.95 • All sales during the year were made on account. Cash collections during the year exceeded sale

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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