Trying to figure out how to do problems like these. So confused!
1. The receivables turnover for 2009 is 10 times.
2. All sales are on account.
3. The profit margin for 2009 is 14.5%.
4. Return on assets is 22% for 2009.
5. The current ratio on December 31, 2009, is 3.0.
6. The inventory turnover for 2009 is 4.8 times.
CORPORATION
Income Statement
For the Year Ended December 31, 2009
Sales $11,000,000
Cost of goods sold ?
Gross profit ?
Operating expenses 1,665,000
Income from operations ?
Other expenses and losses
Interest expense ?
Income before income taxes ?
Income tax expense 560,000
Net income $ ?
Balance Sheets
December 31
Assets: 2009 / 2008
Current assets
Cash $ 450,000 $ 375,000
Accounts receivable (net) ? 950,000
Inventory ? 1,720,000
Total current assets ? 3,045,000
Plant assets (net) 4,620,000 3,955,000
Total assets $ ? $7,000,000
Liabilities and Stockholders’ Equity
Current liabilities $ ? $ 825,000
Long-term notes payable ? 2,800,000
Total liabilities ? 3,625,000
Common stock, $1 par 3,000,000 3,000,000
Retained earnings 400,000 375,000
Total stockholders’ equity 3,400,000 3,375,000
Total liabilities and stockholders’ equity $ ? $7,000,000
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