The following information is available about the company: The following informat
ID: 2486786 • Letter: T
Question
The following information is available about the company:
The following information is available about the company a. All sales during the year were on account. b. There was no change in the number of shares of common stock outstanding during the year c. The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change during the year d. Selected balances at the beginning of the current year were: 220,000 $ 330,000 $1,415,000 Accounts receivable Inventory Total assets e. Selected financial ratios computed from the statements below for the current year are Earnings per share Debt-to-equity ratio Accounts receivable $ 3.06 0.880 15.0 turnover 2.00 Current ratio Return on total assets Times interest earned ratio Acid-test ratio Inventory turnover 12% 6.0 1.19 9.0Explanation / Answer
Pepper Industries Pepper Industries Income Statement Balance Sheet for the Year Ended march 31 Mar-31 Sales $ 3,600,000 Current Assets: Cost of goods sold $ - Cash $ -260,000 Gross margin $ 3,600,000 Account Receivable, net $ 260,000 Seling and administrative expenses $ 3,294,000 Inventory $ 520,000 Net opertaing Income $ 306,000 51000*6 Total Current Assets $ 520,000 Interest Expenses $ 51,000 Plant & equipment, net $ 1,125,000 Net income before tax $ 255,000 Total Assets $ 1,645,000 Income Taxes(40%) $ 102,000 Liabilities: Net Income $ 153,000 Current liabilities $ 260,000 Bonds payable, 10% $ 510,000 Total liabilities $ 770,000 Stockholders equity common stock, $2.50 par value $ 125,000 153000/3.06 Retained earnings $ 750,000 Total stockholders equity $ 875,000 Total liabilities and stockholders equity $ 1,645,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.