The following information was taken from Weston Company's 2028 balance sheets: December 31 ? Assets Liabilities January 1 $200,000 $ 65,000 $135,000 ? Equity ? Weston Company's income statement for 2028 is given below: Sales revenue $400,000 $230,000 Cost of goods sold Interest expense Income tax expense Net income $ 35,000 ? Additional information for Weston Company includes: 1) Net income for 2028 was equal to 170 % of the interest expense for 2028. 2) The times interest earned ratio for 2028 was 3.4. 3) The debt-to-equity ratio at December 31, 2028 was 0.62. 4) The return on equity (ROE) ratio for 2028 was 40% Calculate the amount of assets reported on Weston Company's December 31, 2028 balance sheet.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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The following information was taken from Weston Company's
2028 balance sheets:
December 31
?
Assets
Liabilities
January 1
$200,000
$ 65,000
$135,000
?
Equity
?
Weston Company's income statement for 2028 is given below:
Sales revenue
$400,000
$230,000
Cost of goods sold
Interest expense
Income tax expense
Net income
$ 35,000
?
Additional information for Weston Company includes:
1) Net income for 2028 was equal to 170 % of the interest
expense for 2028.
2) The times interest earned ratio for 2028 was 3.4.
3) The debt-to-equity ratio at December 31, 2028 was 0.62.
4) The return on equity (ROE) ratio for 2028 was 40%
Calculate the amount of assets reported on Weston Company's
December 31, 2028 balance sheet.
Transcribed Image Text:The following information was taken from Weston Company's 2028 balance sheets: December 31 ? Assets Liabilities January 1 $200,000 $ 65,000 $135,000 ? Equity ? Weston Company's income statement for 2028 is given below: Sales revenue $400,000 $230,000 Cost of goods sold Interest expense Income tax expense Net income $ 35,000 ? Additional information for Weston Company includes: 1) Net income for 2028 was equal to 170 % of the interest expense for 2028. 2) The times interest earned ratio for 2028 was 3.4. 3) The debt-to-equity ratio at December 31, 2028 was 0.62. 4) The return on equity (ROE) ratio for 2028 was 40% Calculate the amount of assets reported on Weston Company's December 31, 2028 balance sheet.
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