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I have one question left on my final paper that I...




I have one question left on my final paper that I absolutely can't figure out. It is as follows: Financial ratios computed for Whittaker, Inc. include the following: Current ratio 1.7 to 1 Acid-test ratio 1.2 to 1 Debt/equity ratio 2.2 to 1 Inventory turnover 3 times Accounts receivable turnover 5 times Times interest earned 4.43 times Gross profit ratio 30% Return on investment 14% Earnings per share $5.45 All sales during the year were made on account. Cash collections during the year exceeded sales by $20,000 and no uncollectable accounts were written off. The balance of the accounts receivable account was $34,000 on January 1, 2011 No common stock was issued during the year. Dividends declared and paid during the year were $8,000. The balance of the inventory account was $116,667 on January 1, 2011. Interest expense on the income statement relates to the 15% bonds payable, $10,000 of these bonds were issued on May 1, 2011; the remaining amount of bonds payable were outstanding throughout the year. All bonds were issued at face amount. (a)Compute the income statement for Whittaker, Inc. (Amounts to be deducted should be indicated with a minus sign. Round your answer to the nearest dollar amount. Omit the $ sign in your response.) WHITTAKER, INC> Income Statement For the Year Ended December 31, 2011 Sales $_________________ Cost of Goods Sold __________________ Gross profit __________________ Operating Expense __________________ Income from operations __________________ Interest Expense __________________ Income before taxes __________________ Income taxes (20%) __________________ NET INCOME $_________________ (b) Complete the balance sheet for Whittaker, Inc. WHITTAKER, INC. Balance Sheet December 31, 2011 Current Assets Cash $_________________ Accounts Receivable, net _________________ Inventory _________________ Total current assets $ 95,200 Property, plant, and equip. net _________________ Total Assets _________________ Current Liabilities _________________ Bonds Payable, 15% $ 73,000 Total Liabilities __________________ Owner's Equity __________________ Common stock, $4 par value $ 9,000 Additional paid-in capital $ 17,000 Retained earnings __________________ Total Owner's Equity ___________________ Total Liabilities and Owners Equ ____________________


Paper#4521 | Written in 18-Jul-2015

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