As you can see, someone has spilled ink over some of the entries in the balance sheet and income statement of Transylvania Railroad (Table 29.12).

Can you use the following information to work out the missing entries?

??Financial leverage: .4.

??Times-interest-earned: 8.

??Current ratio: 1.4.

??Quick ratio: 1.0.

??Cash ratio: .2.

??Return on total assets: .18.

??Return on equity: .41.

??Inventory turnover: 5.0.

? Receivables? collection period: 71.2 days.

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December 2001 December 2000 Balance Sheet Cash Accounts receivable Inventory Total current assets Fixed assets, net 20 34 26 80 25 Total 105 Notes payable Accounts payable Total current liabilities Long-term debt Equity Total 30 35 25 20 55 20 30 115 105 Income Statement Sales Cost of goods sold Selling, general, and administrative expenses Depreciation EBIT 10 20 Interest Earnings before tax Tax Earnings available for common stock