A computer problem at Castle Rock Appliance Repair has resulted in incomplete financial statements. Management of the company has asked you to see if you can fill in the missing data.

a. Recreate the financial statements as shown using formulas with the ratios given below to fill in the cells with the word "Ratio." Use the ROUND function to round each of these answers to the nearest $10.
Ratio Value
Current Ratio................................................ 0.898550
Inventory Turnover*.........................................2.109890
A/R Turnover.............................................. 10.000000
Fixed Asset Turnover...................................... 1.818180
LTD To Equity............................................. 0.395350
Times Interest Earned...................................... 2.786890
Net Profit Margin.......................................... 0.047688
Return on Total Assets.................................... 0.050870
Return on Equity........................................... 0.131440
* Uses Cost of Goods Sold in numerator.
b. Complete the financial statements by using formulas that refer to existing data to fill in the remaining cells.

Transcribed Image Text:

Castle Rock Appliance Repair Incomc Statement For the Year Ended December 31, 2011 Castle Rock Appliance Repair Balance Shect As of December 31,2011 2011 Ratio Ratio Formula 47,000 Formula Ratio Formula Formula Ratio 2011 Sales Cost of Goods Sold Assets Cash Accounts Receivable Gross Profit Operating Expenses Earnings Before Interest and Taxes Interest Expense Earnings Before Taxes Taxes Net Income 500 Ratio 45,500 Formula 126,000 Formula Ratio 150,000 Total Current Assets Gross Fixed Assets Accumulated Depreciation Net Fixed Assets Total Assets Liabilities and Owner's Equity 22,000 Formula Ratio Ratio Ratio Formula Notes: Tax Rate 30% Accounts Payable Short-term Bank Notes Total Current Liabilities Long-term Debt Common Equity Total Liabilities and Equity