Presented below is an incomplete income statement and an incomplete - 14027

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Presented below is an incomplete income statement and an incomplete comparative balance sheet of Bondi Corporation.

Additional information:

1.

 

The receivables turnover for 2013 is 10 times.

2.

 

All sales are on account.

3.

 

The profit margin for 2013 is 14.5%.

4.

 

Return on assets is 22% for 2013.

5.

 

The current ratio on December 31, 2013, is 3.

6.

 

The inventory turnover for 2013 is 4.8 times.


Compute the missing information given the ratios above. (Note: Start with one ratio and derive as much information as possible from it before trying another ratio. List all missing amounts under the ratio used to find the information.)

BONDI CORPORATION
Income Statement
For the Year Ended December 31, 2013

Net 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

 

$

 

BONDI CORPORATION
Balance Sheets
December 31

Assets

 

2013

 

2012

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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Attachments
Problem 18-7A.docx
Problem 18-7A.d...