Incomplete financial statements for Tanner Company are given below:

The following additional information is available about the company:
a. Selected financial ratios computed from the statements above are given below:
Current ratio . . . . . . . . . . . . . . . . . . . . . 2.40
Acid-test ratio . . . . . . . . . . . . . . . . . . . . 1.12
Accounts receivable turnover . . . . . . . 15.0
Inventory turnover . . . . . . . . . . . . . . . . 6.0
Debt-to-equity ratio . . . . . . . . . . . . . . . 0.875
Times interest earned . . . . . . . . . . . . . 7.0
Earnings per share . . . . . . . . . . . . . . . $4.05
Return on total assets . . . . . . . . . . . . . 14%
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 . . . . . . . . . . . . . . $1,200,000
Required:
Compute the missing amounts on the company€™s financialstatements.

Transcribed Image Text:

Tanner Company Income Statement For the Year Ended December 31 Cost of goods sold-... expense 45,000 Income taxes (40%). . Tanner Company Balance Sheet Accounts receivable, net Inventory.. .. . .- ..-. Total current assets Plant and equipment, net .. Common stock, $2.50 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity