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Define financial statement construction via ratios

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Reference no: EM13491742

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.

 

Reference no: EM13491742

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