The following ratios have been computed for Pina Colada Company for 2022. Profit margin ratio 20 % Current ratio 2.5 :1 Times interest earned 12 times Debt to assets ratio 24 % Accounts receivable turnover 5 times Use the above ratios and information from the Pina Colada Company financial statements to fill in the missing information on the financial statements.The 2022 financial statements for Pina Colada Company with missing information follows: (Include calculations) PINA COLADA COMPANYComparative Balance SheetDecember 31, 2022 2021 Assets Cash $ 26,500 $ 37,100 Debt Investments 15,900 15,900 Accounts receivable (net) 53,000 Inventory 53,000 Property, plant, and equipment (net) 212,000 169,600 Total assets Liabilities and stockholders' equity Accounts payable $ 15,900 $ 26,500 Short-term notes payable 37,100 31,800 Bonds payable Enter a dollar amount 21,200 Common stock 212,000 212,000 Retained earnings 49,820 37,100 Total liabilities and stockholders' equity $328,600 PINA COLADA COMPANYIncome StatementFor the Year Ended December 31, 2022 Net sales $212,000 Cost of goods sold 106,000 Gross profit 106,000 Expenses: Depreciation expense Interest expense 5,300 Selling expenses 10,600 Administrative expenses 15,900 Total expenses Income before income taxes Income tax expense Net income

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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The following ratios have been computed for Pina Colada Company for 2022.

Profit margin ratio	20	%	Current ratio	2.5	:1
Times interest earned	12	times	Debt to assets ratio	24	%
Accounts receivable turnover	5	times

Use the above ratios and information from the Pina Colada Company financial statements to fill in the missing information on the financial statements.

The 2022 financial statements for Pina Colada Company with missing information follows: (Include calculations)

PINA COLADA COMPANY Comparative Balance Sheet December 31,
	2022	2021
Assets
Cash	$ 26,500	$ 37,100
Debt Investments	15,900	15,900
Accounts receivable (net)		53,000
Inventory		53,000
Property, plant, and equipment (net)	212,000	169,600
Total assets
Liabilities and stockholders' equity
Accounts payable	$ 15,900	$ 26,500
Short-term notes payable	37,100	31,800
Bonds payable	Enter a dollar amount	21,200
Common stock	212,000	212,000
Retained earnings	49,820	37,100
Total liabilities and stockholders' equity		$328,600

PINA COLADA COMPANY Income Statement For the Year Ended December 31, 2022
Net sales			$212,000
Cost of goods sold			106,000
Gross profit			106,000
Expenses:
	Depreciation expense
	Interest expense	5,300
	Selling expenses	10,600
	Administrative expenses	15,900
	Total expenses
Income before income taxes
	Income tax expense
Net income

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