Partially completed financial statements for Whittaker. Inc. follow: WHITTAKER, INC. Income Statement For the Year Ended December
Question:
Partially completed financial statements for Whittaker. Inc. follow:
WHITTAKER, INC.
Income Statement
For the Year Ended December 31, 2017
Sales................................................................................................................................... $ ?
Cost of goods sold............................................................................................................... 7
Gross profit........................................................................................................................ $ ?
Operating expenses............................................................................................................... ?
Income from operations..................................................................................................... $ ?
Interest expense.................................................................................................................... ?
Income Ocfore taxes.......................................................................................................... $ ?
Income taxes (20%)............................................................................................................ _?_
Net income.......................................................................................................................... $ ?
WHITTAKER, INC.
Balance Sheet
December 31, 2017
Current assets:
Cash...................................................................................................................................... $ ?
Accounts receivable, net.......................................................................................................... ?
Inventory................................................................................................................................. ?
Total current assets..................................................................................................... $342.000
Property, plant, and equipment, net........................................................................................ ?
Total assets........................................................................................................................... $ ?
Cuirent liabilities.................................................................................................................. $ ?
Bonds payable. 15%..................................................................................................... 140.030
Total liabilities...................................................................................................................... $ ?
Stockholders' equity:
Common stock. $2 par value...................................................................................... $ 20.000
Additional paid in capital.............................................................................................. 30.000
Retained earnings............................................................................................................... $ ?
Total stockholders'equity..................................................................................................... $ ?
Total liabilities and stockholders' equity............................................................................. $ ?
Additional information:
• Fnanaa; ratios computed from these financial statements include the following:
Current ratio................................................................................................................. 1.9 to 1
Add test ratio............................................................................................................... 1.3 to 1
Debt/equity ratio.......................................................................................................... 2.0 to 1
Inventory turnover..................................................................................................... 4.0 times
Accounts receivable turnover.................................................................................... 6.8 times
Times interest earned............................................................................................... 4.45 times
Gross profit ratio............................................................................ ................................. 40%
Return on investment ...................................................................................................... 12%
Earnings per share.......................................................................................................... $5.52
• All sales during the year were made on account. Cash collections during the year exceeded sales by $28.030 and no uncollectible accounts were written oft
• The balance of the accounts receivable account was $114.030 on January 1.2017.
• No common stock was issued during the year.
• Dividends declared and paid during the year were $15.200.
• The balance of the inventory account was $96.000 on January' 1. 2017.
• Interest expense on the income statement relates to the 15% bends payable $20.000 of these bonds were issued on May 1.2017: the remaining amount of bonds payable were outstanding throughout the year. All bonds were issued at face amount.
Required:
a. Complete the income statement and balance sheet for Whittaker. Inc. Show how each amount was determined.
b. After completing part a, use your answers to recomputed each of the financial ratios provided as additional information.
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Step by Step Answer:
a Although students are quite challenged by this case they generally prefer not to be provided any hints if it is assigned as an individual takehome case If it is used as an inclass grouplearning case ...View the full answer
Accounting What the Numbers Mean
ISBN: 978-1259535314
11th edition
Authors: David Marshall, Wayne McManus, Daniel Viele
