Cadux Candy Company's income statement for the year ended December 31, 2021, reported interest expense of $6 million andincome tax expense of $32 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 2021 are listed below. Profitability andturnover ratios with balance sheet items in the denominator were calculated using year-end balances rather than averagesDebt to equity ratioCurrent ratioAcid-test ratio.Times interest earned ratioReturn on assetsReturn on equityProfit margin on salesGross profit margin(gross profit divided by net sales)Inventory turnoverReceivables turnoverAssetsCurrent assetsCashCADUX CANDY COMPANYBalance SheetAt December 31, 2021(All values are in millions)Required:Prepare a December 31, 2021, balance sheet for the Cadux Candy Company. (Enter your answers in millions. Round yourintermediate calculations and final answer to the nearest whole million.)Accounts receivable (net)InventoriesTotal current assetsProperty, plant, and equipment (net)Total assetsLiabilities and Shareholders' EquityCurrent liabilitiesLong-term liabilitiesShareholders' equityTotal liabilities and shareholders' equity$1.02.01.0$13 times10%20%5%35%10 times20 times0100

The balance sheet, also known as the statement of financial position, is the third general-purpose…

Answered: Required: Prepare a December 31, 2021,…

Required: Prepare a December 31, 2021, balance sheet for the Cadux Candy Company. (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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Question

Cadux Candy Company's income statement for the year ended December 31, 2021, reported interest expense of $6 million and
income tax expense of $32 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 2021 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, 2021
(All values are in millions)
Required:
Prepare a December 31, 2021, balance sheet for the Cadux Candy Company. (Enter your answers in millions. Round your
intermediate calculations and final answer to the nearest whole million.)
Accounts receivable (net)
Inventories
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
$
1.0
2.0
1.0
$
13 times
10%
20%
5%
35%
10 times
20 times
01
0
0

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