Financial ratios computed for Whittaker Inc. include the following:

Current ratio		1.9	to 1
Acid-test ratio		1.4	to 1
Debt/equity ratio		2.0	to 1
Inventory turnover		3.6	times
Accounts receivable turnover		5.4	times
Times interest earned		4.60	times
Gross profit ratio		40	%
Return on investment		7.17	%
Earnings per share	$	3.40

• All sales during the year were made on account. Cash collections during the year exceeded sales by $13,000, and no uncollectible accounts were written off.
• The balance of the accounts receivable account was $55,000 on January 1, 2020.
• No common stock was issued during the year.
• Dividends declared and paid during the year were $2,228.
• The balance of the inventory account was $37,300 on January 1, 2020.
• Interest expense on the income statement relates to the 10% bonds payable; $12,000 of these bonds were issued on May 1, 2020; the remaining amount of bonds payable were outstanding throughout the year. All bonds were issued at face amount.
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a. Complete the income statement and balance sheet for Whittaker Inc. WHITTAKER INC. İncome Statement For the Year Ended December 31, 2020 $1,328,400 X 797,040 X Sales Cost of goods sold Gross profit Operating expenses Income from operations $ 531,360 Interest expense Income before taxes Income taxes (20%) Net income a. Complete the income statement and balance sheet for Whittaker Inc. WHITTAKER INC. İncome Statement For the Year Ended December 31, 2020 $1,328,400 X 797,040 X Sales Cost of goods sold Gross profit Operating expenses Income from operations $ 531,360 Interest expense Income before taxes Income taxes (20%) Net income

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