Question

An incomplete income statement and an incomplete comparative balance sheet of Deines Corporation are presented below.
DEINES CORPORATION
Income Statement
For the Year Ended December 31, 2015
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 $ ............ ?


Additional information:
1. The accounts receivable turnover for 2015 is 10 times.
2. All sales are on account.
3. The profit margin for 2015 is 14.5%.
4. Return on assets is 22% for 2015.
5. The current ratio on December 31, 2015, is 3.0.
6. The inventory turnover for 2015 is 4.8 times.

Instructions
Compute the missing information given the ratios above. Show computations.


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  • CreatedJanuary 30, 2014
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