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The interest expense on the income statement relates to the

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Reference no: EM13576904

The following information is available about the company:

a. Selected financial ratios computed from the statements above are given below:




  Current ratio
2.60
  Acid-test ratio
1.19
  Accounts receivable turnover
16.0
  Inventory turnover
6.0
  Debt-to-equity ratio
0.900
  Times interest earned
8.0
  Earnings per share $ 4.83
  Return on total assets
12 %

b. All sales during the year were on account.
c. The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change throughout the year.
d.

There were no changes in the number of shares of common stock outstanding during the year.
e. Selected balances at the beginning of the current year (January 1) were as follows:



  Accounts receivable $ 160,000
  Inventory $ 280,000  
  Total assets $ 2,160,000  

Required:

Compute the missing amounts on the company's financial statements. (Input all amounts as positive values. Round your final answers to the nearest whole dollar amount. Omit the "$" sign in your response.)
Tanner Company
Income Statement
For the Year Ended December 31
  Sales $3,100,000   
  Cost of goods sold   


  Gross margin   
  Selling and administrative expenses   


  Net operating income   
  Interest expense 46,000   


  Net income before taxes   
  Income taxes (40%)   


  Net income $   



Tanner Company
Balance Sheet
December 31
  Current assets:
        Cash $   
        Accounts receivable, net   
        Inventory   


  Total current assets   
  Plant and equipment, net   


  Total assets $   




       Current liabilities $260,000   
       Bonds payable, 10%   


  Total liabilities   


  Stockholders' equity:
       Common stock, $2.60 par value   
       Retained earnings   


  Total stockholders' equity   


  Total liabilities and stockholders' equity $   


Reference no: EM13576904

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