Reference no: EM13983133

You are at year-end-and you are at wit's end; the person in charge of putting together the financial statements did get the income statement done but is now ill and unable to complete the statements before a major deadline. One other piece of good news-some financial ratios were calculated and you have a few other scraps of information.

First of all: the income statement:

Net Sales                 $600,000 (all sales made on credit)
Cost of Goods Sold      348,000

Gross Profit               252-,000
Selling and Admin.      180,000

Operating Income        72,000 (which also equals earnings before interest and taxes)

Interest expense         5,000

Income tax                25,000

Net Income after tax  $42,000

Earnings per share      $525 (assume no dilutive securities)

Financial ratios (end of year where relevant; use Gibson textbook formulas) are:

Accounts Receviable Turnover = 12 times
Inventory Turnover = times 5.8
Sales to Fixed Assets = 6 times
Working capital = $51,000
Debt ratio = 0.632
Dividends per share = $2.50

Additional information:

Total depreciation expense was $12,000

No noncash activities for statement of cash flows

No treasury stock during year

No balance sheet accounts active during the year except those listed below

No stock dividends, preferred stock or corporate reorganizations $22,000 of fixed assets purchased during year.

$10,000 of long-term debt retired during year

complete the [a] statement of retained earnings and [b] comparative balance sheet shown below:

                                           Statement of Retained Earnings

Beginning Balance                               $40,000

Add: Net Income

Less: Common dividends paid

Ending balance                                   $   

                                                 Balance sheet