Balance Sheet and Income Statement from ratios :
pavan1001Financial statement construction via ratios. Incomplete financial statements of Lock Box, Inc
4. Financial statement construction via ratios. Incomplete financial statements of Lock Box, Inc., are presented below.
LOCK BOX, INC. Income Statement For the Year Ended December 31, 19X3 | |
Sales | $ ? |
Cost of goods sold | ? |
Gross profit | $15,000,000 |
Operating expenses & interest | ? |
Income before tax | $ ? |
Income taxes, 40% | ? |
Net income | $ ? |
LOCK BOX, INC. Balance Sheet December 31, 19X3 | |
Assets |
|
Cash Accounts receivable Inventory Property, plant, &. equipment Total assets | $ ? ? ? 8,000,000 $24,000,000 |
Liabilities & Stockholders' Equity |
|
Accounts payable Notes payable (short-term) Bonds payable Common stock Retained earnings Total liabilities & stockholders' equity | $ ? 600,000 4,600,000 2,000,000 ? $24,000,000 |
Further information:
1. Cost of goods sold is 60% of sales. All sales are on account.
2. The company's beginning inventory is $5 million; inventory turnover is 4.
3. The debt to total assets ratio is 70%.
4. The profit margin on sales is 6%.
5. The firm's accounts receivable turnover is 5. Receivables increased by $400,000 during the year.
Instructions:
Using the preceding data, complete the income statement and the balance sheet.
13 years ago
Purchase the answer to view it
