I'm having a hard time completing the income statement and balance sheet below. Some of the answers, I've already successfully calculated. 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 Earnings per share Show Transcribed Text 1.9 to 1 1.4 to 1 2.0 to 1 3.6 times 5.4 times 4.60 times 40% 7.17% $3.40 . All sales during the year were made on account. Cash collections during the year exceeded sales by $13,000, and no uncollectible accounts were written off. The balance of the accounts receivable account was $55,000 on January 1, 2020. • No common stock was issued during the year. • Dividends declared and paid during the year were $2,228. . The balance of the inventory account was $37,300 on January 1, 2020. • Interest expense on the income statement relates to the 10% bonds payable; $12,000 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 amount. Sales Cost of goods sold Gross profit WHITTAKER INC. Income Statement For the Year Ended December 31, 2020 Answer is not complete. Operating expenses Income from operations Interest expense Income before taxes Income taxes (20%) Net income 3 Required: a. Complete the income statement and balance sheet for Whittaker Inc. C $ 261,900 157,140 $ 104,760 3 5,900
I'm having a hard time completing the income statement and balance sheet below. Some of the answers, I've already successfully calculated. 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 Earnings per share Show Transcribed Text 1.9 to 1 1.4 to 1 2.0 to 1 3.6 times 5.4 times 4.60 times 40% 7.17% $3.40 . All sales during the year were made on account. Cash collections during the year exceeded sales by $13,000, and no uncollectible accounts were written off. The balance of the accounts receivable account was $55,000 on January 1, 2020. • No common stock was issued during the year. • Dividends declared and paid during the year were $2,228. . The balance of the inventory account was $37,300 on January 1, 2020. • Interest expense on the income statement relates to the 10% bonds payable; $12,000 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 amount. Sales Cost of goods sold Gross profit WHITTAKER INC. Income Statement For the Year Ended December 31, 2020 Answer is not complete. Operating expenses Income from operations Interest expense Income before taxes Income taxes (20%) Net income 3 Required: a. Complete the income statement and balance sheet for Whittaker Inc. C $ 261,900 157,140 $ 104,760 3 5,900
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:I'm having a hard time completing the income statement and balance sheet below. Some of the answers, I've already
successfully calculated.
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
Earnings per share.
Show Transcribed Text
1.9 to 1
1.4 to 1
2.0 to 1
3.6 times
5.4 times
4.60 times
40%
7.17%
$3.40
• All sales during the year were made on account. Cash collections during the year exceeded sales by $13,000, and no uncollectible
accounts were written off.
• The balance of the accounts receivable account was $55,000 on January 1, 2020.
• No common stock was issued during the year.
• Dividends declared and paid during the year were $2,228.
• The balance of the inventory account was $37,300 on January 1, 2020.
• Interest expense on the income statement relates to the 10% bonds payable; $12,000 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 amount.
Sales
Cost of goods sold
Gross profit
WHITTAKER INC.
Income Statement
For the Year Ended December 31, 2020
Answer is not complete.
Operating expenses
Income from operations
Interest expense
Income before taxes
Income taxes (20%)
Net income
Required:
a. Complete the income statement and balance sheet for Whittaker Inc.
3
$ 261,900✔
157,140✔
$ 104,760
Ć
S
5,900
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